GIFT  OF 
Irving  M.  Scott 


GIFT 


HOW  TO 

MAKE  MONEY, 


AND 


HOW   TO    KEEP    IT 


t 
By  THOMAS  A.   DA  VIES, 

A    THOR  OF  COSMOGONY,  OR   MYSTERIES   OF  CREATION,   AND   ANSWER   TO  HUGH  MILLER 
AND  GEOLOGISTS. 


<£ 


NEW  YORK: 

G.   W.  Carleton  &  Co.,  499  Broadway. 

LONDON:    S.   LOW,   SON   &   CO. 

MDCCCLXVIII. 


Entered  according  to  Act  of  Congress,  in  the  year  1867,  by 

THOMAS  A.  DAVIES, 

in  the  Clerk's  Office  of  theDistridt  Court  of  the  United  States,  for  the  Southern  District 

of  New  York. 


GIFT 


The  New  York  Printing  Company, 

8i,  83,  and  85  Centre  Street, 

Ntew  York. 


H  F03  &e 


CONTENTS. 


FAGB 

CHAPTER  I. 

First  Step  in  Money-making  and  Saving,     .        .        .11 

CHAPTER  II. 

What  is  a  Fortune,  and  what  an  Independence  ?    .      16 

CHAPTER  III. 
Fountains  of  Wealth, 22 

CHAPTER  IV. 
Labor  and  its  Representative  money,  .        .        .        .      32 

CHAPTER  V. 

The  Seeds  of  Fortunes,     .        .       ...       .        .       .58 

CHAPTER  VI. 
How  to  make  Money, 81 

CHAPTER  VII. 
Manual  Labor, 108 

CHAPTER  VIII. 
Apprentices, 118 

CHAPTER  IX. 
Clerks, '    .       .129 

CHAPTER  X. 
Farming  and  Growing, 139 


M712450 


x  Contents. 

FAGB 

CHAPTER  XI. 
Mechanical  Business, 152 

CHAPTER  XII. 
Retail  Merchandising, 174 

CHAPTER  XIII. 
Manufacturing  Business,  .       .  ' 182 

CHAPTER  XIV. 
Wholesale  Merchandising, 191 

CHAPTER  XV. 
Brokerage  and  Commission,      .  • 201 

CHAPTER  XVI. 
Intellectual  Labor. — Lawyers, 209 

CHAPTER  XVII. 
Intellectual  Labor. — Physicians, 219 

CHAPTER  XVIII. 

Intellectual  Labor. — Professional  Salaried  Persons,  225 

CHAPTER  XIX. 
Investments, 234 

CHAPTER  XX. 
How  Money  is  lost,    .  245 

CHAPTER  XXI. 
Earnings  and  Savings, 254 

CHAPTER  XXII. 
Banking  and  Insurance, 273 

CHAPTER  XXIII. 
Life  Insurance, 288 


How  to  Make  Money. 


CHAPTER   I. 

FIRST   STEP   IN   MONEY-MAKING  AND   SAVING. 

Can  I  make  money  ? — Will  I  ? — Yes,  and  more. — Tenure  of  a  dollar 
or  of  property. — Why  is  my  money  mine  ? — Good  government 
sure  tenure  by  law. — Watch  politicians. — Property  in  danger. — ■ 
See  to  your  political  principles. — Rights  of  citizens  invaded. — 
Stand  from  under. — Analogy. — How  to  secure  rights. — Sheriff. 
— Posse-Comitatus. — State  troops. — United  States  troops. — All 
the  States. — Millions  of  men. — Success  or  downfall  of  govern- 
ment.— Read  Constitution  and  laws. — Read  on — or  stop. 

Reader,  if  you  have  a  dollar,  or  work  for  one,  you  are 
interested  in  the  contents  of  this  book.  You  have  look- 
ed at  the  title,  and  it  excites  your  cupidity  if  it  does  not 
please  your  fancy.  But  you  say  to  yourself — Will  it  teach 
me  how  to  make  money  ?  If  the  directions  are  followed, 
it  will.  Will  it  show  me  how  to  keep  it  ?  It  will.  It 
will  do  more  than  that — it  will  show  you  how  to  make 
money  with  money.  We  have  much  knowledge  which 
we  do  not  use  to  advantage,  and  you  may  not  apply 
the  principles  here  laid  down ;  if  so,  you  will  probably 
be  no  better  off  by  its  reading. 

By  what  tenure  do  you  hold  the  dollar  or  property 
you  have,  or  get  that  which  is  your  due  ?  Nine-tenths 
of   persons,   and   possibly   a    larger    proportion,   never 


12  How  to  make  Mo7iey. 

heard  this  idea  suggested.  In  other  words,  why  is  not 
your  property  mine  ?  Simply  because  we  have  a  gov- 
ernment, a  social  compact ;  and  one  of  the  laws  of  that 
government  is,  that  what  belongs  to  you  is  your  own, 
and  not  some  other  person's.  This  is  the  fundamental 
law,  the  practice  and  usage  of  all  people.  Then  comes 
the  direct:  question  to  every  one — Are  you  interested  in 
having  what  is  your  own  ?  The  reply  is  certain.  I  am. 
Then  you  are  directly  interested  in  preserving  the  gov- 
ernment and  observing  the  laws,  which  alone  can  secure 
you  in  these  rights,  and  also  in  maintaining  the  rights 
of  others  in  like  manner.  For  you  Cannot  expect  to  be 
maintained  in  yours  unless  you  extend  to  others  the 
same  protection. 

The  moment,  then,  that  one  knows  that  what  he 
has  or  what  he  can  get  depends  upon  equal  laws  and 
equal  j  ustice  to  all,  and  that  the  titles  of  property  rest 
solely  upon  the  law,  such  person  has  made  one  step 
forward  on  the  long  road,  in  not  only  making  money, 
but  in  keeping  the  title  to  it  when  made.  You  cannot 
do  better,  then,  than  watch  your  politicians  (who  gene- 
rally have  no  money),  and  see  that  they  enact  such  laws 
as  are  proper,  and  that  they  do  not  pass  your  money  or 
hard  earnings  into  their  own  pockets  or  those  of  their 
friends.  It  is  the  opinion  of  many  that  there  is  a  little 
too  much  of  this  thing  done  in  the  country  about  these 
times. 

You  may  always  know,  then,  when  the  title  of  your 
property  is  in  danger,  or  when  your  own  rights  are  in 
danger,  from  these  signs.  When  you  see  unequal  laws 
passed,  or  see  one  or  any  number  of  citizens  deprived  of 
legal  rights,  you  may  wisely  conclude  your  turn  will 
come  next     You  may  wisely  conclude,  too,  that  when 


How  to  make  Money.  13 

one  legal  right  of  a  citizen  of  a  State  is  taken  from  him, 
the  next  step  may  be  to  deprive  you  of  your  right  of 
tenure  to  property.  These  are  the  first  evidences  of 
decay  in  the  strength  of  your  government,  and  probably 
of  its  final  dissolution  and  downfall. 

As  a  mere  money-making  and  money-saving  means,  a 
steady,  just  government,  with  laws  well  observed  by  all, 
even  if  no  higher  motive  existed,  is  the  first  great  idea. 
You  may  always  look  for  the  reverse  in  the  actions  of 
those  who  have  nothing  to  lose  and  everything  to  gain. 
If,  then,  you  wish  to  be  well  grounded  in  the  principles 
of  money-making  and  money-saving,  inform  yourself  of 
your  political  position,  and  canvass  carefully  the  effect  of 
your  political  action.  Know  what  principles  you  are  advo- 
cating by  your  vote — whether  they  will  tend  to  disturb 
or  steady  the  monetary  affairs  of  the  State  or  country, 
or  whether  they  are  for  the  good  of  the  whole. 

One  principle  is  certain  in  this  country — that  when 
sections  undertake  to  manage  other  sections  which  have 
the  right  to  manage  themselves  and  their  own  affairs, 
look  out  and  stand  from  under ;  trouble  is  in  the  wind 
and  future.  Look  to  your  dollars,  your  securities,  and 
to  your  lives.  As  much  as  men  can  do  in  bodies-politic 
is  to  manage  themselves  and  their  own  affairs  well,  and 
let  other  people's  business  alone.  No  more  can  one 
body-politic  do  this  successfully  or  satisfactorily,  than 
one  firm  can  interfere  with  and  manage  the  affairs  of. 
another,  without  disturbance,  trouble,  and  disaster. 

That  every  reader  may  understand  how  important  a 
government  and  laws  are  in  making  money  and  keeping 
it,  it  will  only  be  necessary  to  cite  the  process  by  which 
individual  property  rights  are  maintained  in  this  country. 
Suppose  a  property  right  is  invaded,  what  is  the  course 


14  How  to  make  Money. 

of  the  party  to  gain  redress  ?  The  individual  applies  to 
the  legal  tribunals  to  adjudicate  the  case ;  and  upon  a 
hearing,  it  is  decided  favorably,  if  you  please.  The  next 
step  is  to  place  in  the  hands  of  the  sheriff  the  order  of 
the  court,  and  he  proceeds  to  collect  the  amount,  and  if 
the  execution  is  satisfied,  well ;  but  if  not,  and  force  is 
resorted  to,  to  prevent  the  execution,  and  the  sheriff  alone 
is  unable  to  overcome  it,  he  calls  out  his posse-comitatus — 
that  is,  a  number  of  citizens  who  will  aid  him  in  securing 
the  injured  parties'  rights.  If  this  should  not  be  suffi- 
cient, ne  calls  upon  the  Governor  of  the  State  to  turn  out 
the  State  troops ;  and  if  tfrese  are  not  sufficient  still,  the 
Governor  calls  upon  the  President  for  United  States 
troops ;  and  if  they,  too,  are  not  sufficiently  powerful, 
the  President  calls  upon  the  Governors  of  the  various 
States  until  force  enough  is  obtained — amounting,  it  may 
be,  in  this  country  to  many  millions  of  men — to  maintain 
the  rights  of  this  one  individual.  If  the  government  suc- 
ceeds— well,  then,  the  government  stands ;  if  it  fails,  in  all 
probability  another  would  be  established  upon  its  ruins. 
But  the  individual  would  lose  his  rights,  whatever  they 
might  be. 

This  shows  the  magnitude  of  the  individual's  right,  and 
the  importance  to  all  concerned  that  such  right  should 
be  respected  by  legislators  and  all  citizens  without  such 
appeal ;  and  that  such  appeal  may  result  in  the  total 
destruction  of  the  right  and  the  government  also,  besides 
an  untold  los£  of  life  and  property  to  a  large  class  not  in 
any  way  at  fault  in  the  matter. 

Every  one,  then,  who  wishes  to  make  money  and  keep 
it  by  a  secure  tenure,  should  read  the  Constitution  of  the 
United  States  and  the  laws  of  his  own  State,  and  there- 
by inform  himself  of  his  duty  as  a  citizen,  this  being  the 


How  to  make  Money.  15 

first  principle  of  self-interest ;  and  then  see  to  it  that 
you  do  this  duty  faithfully.  If  not,  the  reader  had  better 
stop  where  he  is,  and  save  himself  the  trouble  of  making 
money  to  be  lost  by  his  own  neglect.  If  otherwise,  read 
on,  and  act  according!  y. 


1 6  How  to  make  Money. 


CHAPTER   ili 

WHAT    IS   A    FORTUNE,  AND    WHAT   AN    INDEPENDENCE  ? 

Unanswerable  question. — Halo. — Increases  as  we  approach. — Plea- 
sures of  a  fortune. — Hope. — Anticipations. — Hoarding  stigma- 
tized.— Make  a  show. — No  money. — Obscurity. — Poverty  — 
Question  which. — Spend  or  make. — Fear  to  fall. — False  posi- 
tion.— Lavish  expenditures. — Approved. — Moral  and  political 
duty.  —  Independence.  —  What. — Live  without  labor. — Fixed 
amount. — All  can  gain  independence. — Labor  respectable. — 
All  labor. — No  meanness  or  penuriousness. — Proper  economy. 
— Trouble.  —  Debt.  —  Not  happy.  —  Money  at  interest. — Re- 
spectable.— Contentment. — You  your  owner. — Not  mortgaged. 
— No  slave. — Not  ashamed  to  spend,  not  ashamed  to  make. 

The  answer  to  the  question,  What  is  a  fortune  ?  never  has 
been,  and  probably  never  will  be  answered.  For  what 
may  be  a  fortune  for  one  is  of  little  account  in  the  mil- 
lions of  another.  The  nearest  definition  that  can  be 
given  to  this  undefmable  amount  is,  that  it  is  a  halo  of  a 
mysterious  sum  of  money  which  recedes,  increasing  as 
we  approach.  It  is  almost,  if  not  altogether,  a  universal 
ambition  to  acquire  a  fortune  by  those  who  have  intelli- 
gence enough  to  understand,  or  experience  enough  to 
know,  the  pleasures  which  are  supposed  to  surround  its 
possession.  There  are  peculiar  qualities  of  the  human 
mind  brought  into  action  in  the  pursuit  and  possession 
of  wealth.  The  simple  acquisition  of  money  to  some  is  a 
substantial,  realized  pleasure;  while  with  others  the 
simple  possession  gives  in  like  manner  a  heartfelt  satis- 
faction. Then  there  are  those  who  take  no  special  plea- 
sure  in    the   acquisition,  but   theirs    consists   in   hope 


How  to  make  Money.  iy 

and  anticipation  of  what  they  will  derive  in  its  posses- 
sion or  in  the  spending  of  it ;  while  there  are  still  others 
who  make  to  enjoy  the  fruits,  and  do  enjoy  them  by  a 
liberal  expenditure  in  the  higher  and  nobler  deeds  of  the 
liberal  man  of  fortune  and  luxurious  ease. 

Nor  can  there  be  found  among  men  a  nobler  senti- 
ment than  stimulates  him  who  labors  to  acquire  means 
to  spend  in  contributing  comfort  to  those  whose  mis- 
judgment  or  misfortunes  have  placed  them  in  the  back- 
ground of  poverty  and  want.  Let  such  noble  men  live 
and  enjoy  while  they  dispense ;  the  people  should  be  proud 
of  such  examples,  and  their  own  consciences  will  be  their 
own  reward.  But  what  more  despicable  or  degraded 
than  the  condition  of  those  who  have  a  fortune,  and  are' 
shrivelled  up  in  penuriousness,  meanness,  and  simple 
money-hoarding  !  Such  simply  hold  the  means  of  con- 
tributing pleasure  and  comfort  to  the  deserving,  without 
either  enjoying  what  they  possess  themselves  or  deriv- 
ing any  benefit  from  the  various  ways  of  munificence. 

The  largest  class  of  those  who  make,  or  desire  to  make 
a  fortune,  have  but  one  idea — and  that  is,  to  be  able  to 
make  all  the  external  appearance  and  show  of  a  man  of 
fortune.  Display  is  the  great  object,  and  hence  many 
endeavor  to  put  on  the  exuviae  of  a  fortune,  and  expend 
while  they  do  not  possess  the  means.  This  is  too  lamen- 
tably the  case  nowadays ;  and  the  result  is,  that  all  the 
substance  that  would,  if  saved,  in  time  make  a  fortune,  is 
squandered  in  the  gratification  of  a  pride  only  due  to 
him  who  has  accomplished  the  object.  Nor  do  such 
individuals  gain  more  than  the  merited  contempt  of 
creditors  and  sensible  people ;  they  generally  fail  in  the 
end,  and  sink  in  after  life  into  obscurity  and  poverty. 

It  then   becomes  a  solid  question  for  individuals  to 


1 8  How  to  make  Money. 

maturely  consider,  while  on  the  road  to  fortune,  whether 
they  will  spend  their  own  or  the  substance  of  others — 
whether  they  will  live  as  their  means  warrant,  or  assume 
what  they  really  are  not  ?  The  world  generally  is  not 
deceived  by  such  appearances,  though  it  may  be  in  some 
peculiar  instances.  What  real  pleasure  can  there  be  to 
live  at  an  altitude  in  life  where  there  is  no  foundation 
to  support,  and  fear  of  a  downfall  is  for  ever  haunting 
the  imagination  ?  Such  people  vainly  imagine  that  they 
are  like  the  ostrich,  who  hides  his  head  and  conceives 
his  huge,  ugly  body  is  in  like  manner  obscured.  Re- 
spectability does  not  depend  upon  false  tokens  ;  still,  many 
are  satisfied  with  such  a  style  of  life,  as  the  counterfeiter 
is  with  his  occupation  so  long  as  he  is  not  detected  in  his 
false  position. 

Those  who  possess  fortunes  in  reality  are  frequently 
blamed  for  lavish  expenditure,  and  what  is  called  a  waste 
of  money.  The  more  spent  of  individual  fortune,  the 
better  for  the  community  at  large — for  the  trades,  and  for 
the  laboring  classes.  Nothing  is  more  commendable 
than  'judicious  expenditure  by  those  who  have  the  for- 
tunes producing  incomes.  There  is  a  large  class,  however, 
who  wish  to  spend  as  fast  as  they  acquire  money.  To 
those,  the  only  object  will  be  to  find  out  how  to  make 
it  the  fastest,  that  they  may  have  the  larger  ability  to 
gratify  their  fancies.'  There  is  a  plausibility  of  argument 
which  may  satisfy  this  class  of  individuals,  found  in  the 
fact  that  they  get  the  gratification  by  an  immediate  enjoy- 
ment, which  delay  might  cut  short  in  death  ;  or  the  loss 
of  money  after  the  trouble  of  accumulating  it. 

But  these  are  short-sighted  views  ;  for  all  persons  owe 
it  to  themselves  and  those  dependent  upon  them  to  save 
of  their  means  for  accident  or  misfortune.     7/  is  a  moral 


How  to  make  Money.  19 

and  political  duty  to  make  themselves  and  their  dependants 
independent  of  public  or  private  charity  ;  for  if  they  do  not, 
they  spend  that  which  does  not  aclually  belong  to  them. 
.To  make  oneself  independent  should  be  the  first  great 
aim  of  life.  Then  what  is  an  independence  ?  The 
answer  to  this  question  is  plain ;  being  such  an  amount 
of  money,  safely  invested,  as  will  produce  an  income 
equal  to  the  necessaries  of  life.  In  other  words,  to  be 
able  to  live  without  labor.  If  one  could  always  be  sure 
to  be  able  to  save  even  something,  or  enough  to  keep 
him  from  falling  a  charge  either  upon  public  or  private 
charity,  there  would  be  no  need  of  an  independence. 
But,  as  all  know,  such  cannot  be  guaranteed  to  any  one. 

While  the  fortune,  then,  is  an  indefinable  amount,  the 
independence  is  a  fixed  sum  dependent  upon  the  price 
of  necessaries,  and  the  country  in  which  it  is  required. 
In  some  latitudes  this  amount  is  very  small,  while  in 
others  it  is  no  immaterial  sum.  It  may  be  assumed  that 
the  interest  of  five  thousand  dollars  invested  at  six  per 
cent,  would  accomplish  this  object.  If,  then,  the  desires 
and  wants  are  no  more,  then  the  individual  has  an  inde- 
pendence, and  a  fortune  too.  But  the  ever-living  desire  of 
gain,  even  when  this  sum  is  obtained,  will  spur  on  its 
possessor  to  further  accumulation  as  a  general  rule.  If, 
however,  he  has  others  dependent  upon  him  for  support 
who  cannot  earn  themselves,  he  must  have  as  many 
independencies  as  there  are  individuals  to  support. 

There  is  no  able-bodied  person,  of  sound  mind,  who 
cannot  in  this  country  gain  an  independence  from  labor. 
For  all  he  has  to  do  is  to  lay  aside  of  what  he  re- 
ceives, all  that  is  not  required  for  the  necessaries  of  life ; 
and  by  looking  at  the  tables  at  the  back  of  this  book 
he    will   find    that   small   earnings   per   day   will   soon 


20  Hozv  to  make  Money. 

mount  up  to  this  standard,  and  even  more.  Penurious- 
ness  or  meanness  is  not  recommended  ;  but  on  the  con- 
trary, will  prevent  one  making  the  most  money  with  his 
opportunities.  A  just  and  proper  economy  is  the  true 
line,  and  any  one  can  determine  this  for  himself.  No 
one  feels  so  happy  as  when  he  is  pursuing  a  legitimate 
business,  is  out  of  debt,  and  has  some  money  at  interest. 
From  that  moment  he  lives  in  a  new  world,  is  more  re- 
spected, has  more  substantial  friends,  and  wields  a  greater 
influence  among  his  peers.  Not  only  that,  but  his  very 
independence  of  circumstances  makes  his  services  in  any 
department  of  life  more  valuable,  and  he  can  command 
more  money  for  them,  and  can  hence  accumulate  faster. 

But  let  one  be  behindhand,  or  in  debt,  or  in  trouble, 
or  on  the  anxious  seat  as  to  how  he  will  make  ends  meet 
to  support  himself  and  his  family — he  is  in  the  power  of 
any  one  who  has  any  transactions  with  him.  He  be- 
comes the  suppliant  for  everything ;  and  cannot,  from  the 
nature  of  things,  get  as  much  for  what  he  gives  as  though 
the  reverse  were  the  case.  An  independence,  then,  should 
be  the  first  thing  aimed  at,  either  by  male  or  female ;  and 
every  nerve  and  sinew  should  be  strained,  and  every 
expenditure  scrutinized,  till  this  end  shall  have  been 
attained.  Self-denial  should  be  exercised  in  everything, 
remembering  always  that  such  a  course  is  not  only  re- 
spectable, but  in  the  end  will  make  you  more  friends,  and 
more  happiness  from  the  beginning  to  the  end  of  life. 
You  are,  then,  your  own  always,  and  never  mortgaged  to 
others,  which  is  a  mild  term  for  being  the  slave  of  another. 
The  object  being  here  to  explain  simply  what  a  fortune 
and  an  independence  are,  the  manner  in  which  they  can 
be  acquired  will  be  explained  hereafter. 

The  independence,  although  it  may  free  you  from  fur- 


How  to  make  Money.  21 

ther  labor  to  make  money  by  it,  does  not  free  you  of  labor 
altogether.  The  little  mercantile  business  required  to  be 
carried  on.  to  purchase  your  supplies  and  attend  to  the 
home  comforts,  is  still  to  be  done.  If  that  be  to  spend 
three  hundred  dollars  per  annum,  this  is,  then,  the  amount 
of  your  mercantile  business.  Every  dollar  you  spend 
requires  two  to  make  the  expenditure — the  seller  and  the 
purchaser.  The  man  of  fortune,  who  spends  his  three 
thousand  dollars,  has  in  this  way  ten  times  as  much 
labor  to  perform  as  he  who  spends  his  three  hundred  dol- 
lars ;  and  the  man  who  spends  •'  his  thirty  thousand  dol- 
lars, does  one  hundred  times  as  much  as  the  one  who 
spends  three  hundred  dollars. 

From  this  it  will  be  seen  that  every  calling  in  life  has 
its  labor ;  and  even  the  man  of  fortune  is  not  free  from 
it ;  for  in  addition  to  that  of  the  expenditure,  he  has  also 
to  see  to  his  investments,  to  the  collection  of  his  income, 
and  such-like  ;  so  that  all  have  labor  of  some  kind  or 
another  to  perform,  and  hence  we  conclude  that  labor  is 
respectable,  and  none  need  be  ashamed  to  labor  who  would 
not  be  ashamed  to  be  seen  spending  a  dollar.  Only  those 
who  have  no  money,  and  do  not  know  the  process  by  which 
it  is  attained,  look  down  upon  honest  labor.  The  laborer 
stands  higher  in  the  scale  of  usefulness  than  they,  if  they 
have  no  accumulated  labor  (money)  to  compare  with  him. 

So  that  none  need  hesitate,  who  want  money,  to 
work  wherever  they  can  gain  employment ;  and  if  they 
can  carry  with  them  knowledge  and  superior  acquire- 
ments, their  services  will  be  more  valuable,  but  not  a  whit 
more  respectable,  on  the  great  scale  of  political  economy. 
Bearing  this  steadily  in  mind,  and  profiting  by  it,  you 
have  laid  a  good  foundation  for  success  in  acquiring  an 
.ndependence  or  a  fortune. 


22  How  to  make  Money. 


*       CHAPTER  III. 

FOUNTAINS   OF  WEALTH. 

Fountains  of  wealth  open  to  all. — Beacon-lights — Wealth  the  great 
struggle. — The  ups  and  downs. — Not  explainable. — Founda- 
tions of  value. — Machinery  of  life. — Questions. — How  to  make 
services  valuable. — Example.— Result. — Same  wages  most  valu- 
able.— Most  money. — Best  labor  cheapest. — Mechanical  labor 
compared. — Best  makes  most  money. — Promotion  by  care. — 
Servant  girls. — Best  make  most. — Small  fortunes. — Salesmen 
compared. — Interest. — Pleasant  manners. — Attention  to  busi- 
ness.— Advancement. — Best  makes  $131,950. — Poorest  makes 
nothing. — Springs  that  feed  the  fountain. — Great  secret. — 
Wealth  in  value  of  services. 

In  this  country,  the  fountains  of  wealth  are  open  to  all. 
Few  avail  themselves  of  the  opportunity  presented  to 
accumulate  a  fortune,  while  every  one  of  able  body  and 
sound  mind  can  make  himself  independent  of  labor,  if 
not  achieve  a  fortune  in  time.  As  far  as  history,  either 
sacred  or  profane,  leads  us  back  over  the  toiling  masses 
of  mankind,  the  struggles  for  wealth  stand  as  beacon- 
lights  above  their  efforts  of  every  other  kind.  Within 
these  labyrinths,  and  at  every  stand-point  of  the  historian, 
the  eternal  desire  for  gain  shows  itself  in  almost  every 
motive,  and  has  nerved  to  acticm  almost  every  toiling 
hand.  These  struggles  spring  from  necessities  implant- 
ed in  man's  very  existence ;  and  however  high-born  or 
depressed  in  the  scale  of  life  an  individual  may  be,  his 
nature  demands  sustenance,  and  whether  he  labors  for  it 
himself  or  not,  some  one  must  fulfil  the  necessity  and 
till  the  ground  for  his  sake. 


How  to  make  Money.  23 

Labor,  then,  is  the  living  fountain  of  wealth,  from  out 
0*"  whose  depths  flow  the  alimental  and  luxurious  streams 
of  life.  As  the  Maker  of  all  things  has  moulded  one 
particle  of  water  like  another,  so  too,  by  nature,  is  one 
laborer  like  another.  Each  may  take  different  positions 
iii  life,  first  up,  then  below,  changing  positions  at  every 
moment  of  time,  fulfilling  laws  which  are  inexplicable  by 
the  deepest  philosophy.  To-day  may  see  one  basking  in 
the  upper-jeweldom  of  sunshine  ;  to-morrow,  sunk  in 
deep-down  recesses  where  the  smiles  of  plenty,  or  the 
cheering  rays  of  luxury  never  reach.  To-day  may  see 
the  bubble  of  circumstance  quickly  convey  one  from 
beneath,  and  bear  him  above  for  a  time  upon  its  spar- 
kling glitter  ;  to-morrow,  memory  serves  to  tell  his  his- 
<tory — in  poverty  or  distress. 

Why  one  particular  globule  of  water  is  upon  the  sur- 
face, and  another  just  like  it,  is  at  the  bottom  of  the 
ocean,  bearing  its  proportion  of  the  superincumbent 
weight  of  others  above — or  why  one  individual  glides 
serenely  on  in  the  pleasures  of  life  with  every  want  sup- 
plied, and  another  toils  in  the  scorching  sun,  overtasked 
with  labor,  bearing  the  burdens  of  others,  is  beyond  the 
ability  of  the  naturalist  or  the  logic  of  the  political  econ- 
omist to  explain.  No  other  solution  can  be  given  for 
the  cause  of  such  relations  than  can  be  found  in  what 
would  seem  to  be  a  natural  axiom — that  because  an  ocean 
must  be  made  up  of  globules  of  water,  hence  some  must 
be  below  and  perform  a  heavier  duty  than  those  which 
of  necessity  must  be  above  ;  or  that  because  a  commu- 
nity must  be  made  up  of  individuals,  hence  some  must 
occupy  superior,  and  others  inferior  positions.  Nor  does 
this  necessity  grow  out  of  the  normal  condition  of  man  ; 
for  that  is  agriculture  limited,  too,  to  the  supply  of  the 


24  How  to  make  Money. 

bare  necessaries  of  life,  and  that  agriculture  performed 
with  the  rudest  implements  fashioned  by  the  laborers 
themselves. 

Such  labor,  it  will  be  seen,  ,is  the  foundation  of  all 
values.  Its  institution  caused  the  necessity  for  tools  to 
carry  it  on  to  advantage  ;  and  for  these,  materials  in  wood 
and  metals  were  required,' which  opened  new  avenues  of 
wants,  till  the  great  machinery  of  human  labor  in  all  its 
varieties  has  been  set  in  motion.  It  will  be  unnecessary 
to  follow  up  the  dependence  of  one  branch  of  industry 
upon  another,  or  their  relative  importance  to  the  whole ; 
sufficient  for  the  purposes  in  hand  is  a  glance  at  the 
whole,  to  show  that  from  any  or  from  all,  money  can  be 
made  by  individuals  by  labor  in  or  around  this  multipli- 
city of  elementary  occupations. 

But,  says  the  reader,  we  knew  all  this  before  ;  and  what 
insight  does  this  give  towards  making  money  ^  In  order 
to  make  money,  one  has  first  to  be  told  where  it  can  be 
had,  and  by  what  means  ;  and  after  that,  the  best  mode  of 
getting  the  most  of  it  by  individual  exertion.  And  now  it 
may  be  asked — If  you  want  a  lawyer  to  manage  an  im- 
portant case,  do  you  employ  a  poor  one  ?  If  you  are 
dangerously  sick,  do  you  employ  a  poor  physician  ?  If 
you  want  a  good  servant,  do  you  take  a  greenhorn  ?  If 
you  want  a  good,  capable,  and  trustworthy  clerk,  do  you 
hire  one  having  none  of  these  qualities  ?  If  you  want 
a  good  thing  of  any  kind,  is  it  of  no  consequence  whether 
you  employ  an  honest  or  dishonest  man  to  get  it  for  you  ? 
If  you  want  a  good  job  of  carpentry  done,  do  you  em- 
ploy a  botch  ?  If  you  want  good  masonry  put  up,  do 
you  get  a  hod-carrier  to  do  it  ?  No  matter  what  may  be 
the  experience  of  the  reader  in  such  matters,  he  will 
answer  all  these  questions  in  the  negative,  and  sum  up 


How  to  make  Money.  25 

the  whole  matter  by  saying — If  I  want  a  thing  done,  I  get 
the  best  man  I  can,  who  will  do  it  cheapest ;  and  at  the 
same  time  such  individual  knows  that  the  cheapest  is 
sometimes,  and  is  most  generally,  the  dearest. 

But  little  reflection  is  required  to  see  that  the  most 
valuable  services  will  always  bring  the  most  money  ;  and 
in  this  principle  lies  the  hidden  recess  from  which  flows 
the  stream  of  independence  or  a  fortune.  It  must  not  be 
forgotten,  or  passed  by,  or  neglected  by  any  one  who 
wishes  to  make  the  most  money  out  of  his  labor  or  ser- 
vices, no  matter  what  they  may  be.  We  give  an  exam- 
ple. Two  mechanics  worked  upon  the  same  piece  of 
machinery ;  both  from  circumstances  received  the  same 
pay.  One  was  faithful,  pleasant  in  his  manners,  obliging, 
polite,  agreeable,  worked  for  the  interest  of  his  boss,  and 
was  careful  of  material  and  saving  of  his  time  in  doing 
his  work  to  advantage  ;  and  did  his  work  well.  The  other 
did  his  work  equally  well  when  it  was  done  ;  but  he  was 
snappish,  was  an  eye-servant,  was  disobliging,  uncivil,  cut 
and  slashed  material  to  loss  ;  took  his  ease  about  every- 
thing, and  was  only  careful  about  one  object,  and  that  was 
to  put  in  his  time.  Both  received  the  same  amount  of 
money  each  pay-day.  The  general  impression  was,  that 
they  both  were  earning  money  equally  fast,  and  so  they 
would  have  been  as  long  as  they  both  continued  to  receive 
the  same  amount  of  money.  The  truth  turned  out  in  the 
end  that  the  first  one  had  been  accumulating  standing 
friends,  influence,  character,  and  personal  interest ;  while 
the  other  had  stood  still,  if  he  had  not  lost  what  the 
other  had  gained.  The  first  probably  never  cast  a  thought 
of  a  result  further  than  to  do  his  duty  as  a  matter  of  corh- 
mon  honesty,  while  the  other  only  had  the  simple  thought 
of  getting  his  wages  for  his  time  put  in.    These  men,  then, 


26  How  to  make  Money. 

worked  upon  no  idea  of  making  the  most  money  that 
could  be  made  by  their  services  ;  for  if  they  had,  probably 
both  would  have  worked  better,  and  had  they  been  in- 
formed of  the  means,  both  would  have  been  in  the  way 
of  receiving  extra  compensation  by  advancement. 

The  result  was,  however,  that  the  boss  was  applied  to 
to  recommend  a  foreman  for  some  important  job  at  the 
South  ;  and  the  personal  interest  he  felt  in  the  first  young 
mechanic,  coupled  with  the  consideration  that  he  had 
been  faithful  and  hone-t,  trustworthy  and  capable,  led  him 
to  forego  his  own  interest  in  him  as  a  workman,  and 
recommend  him  for  the  promotion  which  he  got. 

Let  us  analyze  the  two  cases,  and  see  whether  these 
two  mechanics  did  absolutely  receive  the  same  amount 
of  money  for  their  services.  They  both  received  two 
dollars  a  day,  for  this  was  some  time  ago.  The  foreman, 
however,  was  to  get  five  dollars  a  day  for  five  years,  and 
all  expenses  paid.  So  that,  considering  he  had  to  pay  his 
board  at  home,  he  got  three  dollars  and  a  half  more  a  day 
than  he  was  getting.  By  looking  at  the  tables  at  the  end 
of  the  book,  you  will'  find  that  this  amount  daily  for  five 
years,  of  three  hundred  and  thirteen  days,  amounts  to 
$6,425.87,  interest  added  each  six  months  at  seven  per 
cent.  The  other  mechanic  in  the  meantime  was  getting 
the  same  as  he  had.  Now  the  two  had  worked  for  the 
same  boss,  and  in  the  same  shop,  two  years  before  the 
first  was  made  a  foreman.  It  will  be  seen  then  by  calcu- 
lation that  although  both  were  working  for  the  same  pay, 
one  actually  received  $6,425.87  more  than  the  other.  Or 
for  the  two  years,  while  they  both  received  the  same 
money  apparently,  one  received  in  fac~t  $11.51  more  than 
the  other  per  day. 

The  young  man,  when  he  received  this  sum  of  $6,425.87, 


How  to  make  Money.  27 

was  just  twenty-five  years  of  age,  which  if  improved  at 
compound  interest  at  seven  per  cent,  till  he  was  fifty 
years  of  age,  would  amount  to  $34,875.98  ;  a  snug  little 
fortune,  and  a  certain  independence  for  the  remainder  of 
his  life,  if  he  had  done  no  more  than  just  support  himself 
in  the  meantime.  This  simple  case  illustrates  a  very 
important  principle  in  money-making ;  any  one  who 
works  for  another,  and  who  cannot  or  will  not  apply  the 
lesson  to  his  own  condition,  will  fail  to  do  that  which 
would  make  his  services  worth  the  most  money  to  him- 
self. 

Let  us  examine  the  principles  of  action  which,  whether 
intentional  or  not,  directly  brought  about  this  result,  and 
they  will  be  found  as  follows  : 

First. — General  deportment,  consisting  of  pleasant, 
agreeable,  and  attractive  manners. 

Second. — Displaying  an  interest  in  the  interests  of  his 
employer,  by  which  an  interest  was  created  in  the  mind 
of  the  employer  for  him. 

Third. — Economy  in  time  and  material  used,  by  which 
the  employer  made  money  over  the  ordinary  workman, 
and  which  all  men  will  remember  and  reciprocate  at  the 
first  opportunity.  1 

There  is,  however,  another  advantage  from  such  a 
course  of  conduct,  even  though  it  does  not  lead  to  such 
a  large  result  as  the  one  cited.  It  is  always  sure  to  gain 
for  the  individual  the  highest  rate  of  wages  under  any 
circumstances,  and  we  will  illustrate  it  on  a  very  limited 
scale.  Two  female  servants  were  engaged  in  the  same 
house,  at  the  same  wages,  seven  dollars  per  month, 
One  was  careful,  attentive,  kind,  obliging,  pleasant,  and 
did  all  and  everything  to  please,  save,  and  take  care  of 
the  interests  of  the  household;  in  other  words,  made' 


2  8  How  to  make  Money. 

herself  an  agreeable  and  useful  servant ;  while  the 
other  did  what  she  was  told,  and  took  about  as  much 
interest  in  matters  as  servants  generally  do  who  think 
their  whole  duty  is  to  do  just  so  much,  and  get  their 
money  for  doing  as  little  as  possible.  It  so  happened 
that  the  family  determined  to  discharge  one  of  the  two 
servants,  not  wishing  to  keep  both.  Reader,  can  you 
divine  which  of  the  two  was  discharged  ?  The  one  was 
discharged  who  was  the  least  useful ;  and  now  we  will 
just  look  at  the  accounts  of  these  two  servants  for  one 
year  only,  and  see  how  they  stood  at  the  end  of  it.  The 
one  that  remained  did  the  work  of  both,  and^  had  her 
wages  raised  to  ten  dollars  ;  the  one  that  left  was  out  of 
employment  three  months,  and  finally  was  compelled  to 
take  a  place  af  six  dollars  per  month. 

The  first  received  for  her  year's  work  $  1 20.  The  sec- 
ond received  $54.  The  necessary  expenses  of  the  first  for 
dress,  etc.,  was  $40,  leaving  $80  clear  gain.  The  second 
paid  three  months'  board  at  $9  per  month,  and  the  bal- 
ance of  all  she  received  for  clothing  and  other  necessa- 
ries. So  that  while  they  were  working  together  they 
received  the  same  money ;  but  from  the  way  in  which 
each  was  valuable  or  agreeable  to  the  employers — dur- 
ing the  time  of  the  next  year  one  received  $80  more 
than  the  other  in  cash  profit,  and  got  $13  more  in  cloth- 
ing and  necessaries. 

Each  of  the  girls  was  twenty  years  old  at  the  end  of 
the  year  when  they  worked  separately.  Let  us  look  what 
this  $80  will  accumulate  to,  if  put  in  a  savings  institu- 
tion and  improved  at  compound  interest  at  six  per  cent, 
when  she  arrives  at  fifty  years  of  age.  By  consulting 
tables  it  will  be  found  that  it  will  amount  to  $469.40,  as 
being  the  difference  of  action  of  two  servant  girls  in  the 


How  to  make  Money.  29 

same  house  receiving  only  $7  per  month.  If  she  had  ac- 
cumulated the  same  amount  of  $80  each  year  till  she  was 
fifty  years  old,  the  tables  on  thirty  years,  page  — ,  shows 
that  it  would  amount  to  $6,329.47,  the  earnings  being  25 
cents  per  day  for  313  working  days. 

The  two  cases  cited  are  among  the  lowest  classes  of 
labor  ;  and  now,  for  the  purpose  of  a  higher  illustration, 
let  us  take  the  instance  of  two  clerks  in  a  wholesale  dry- 
goods  establishment.  Both  were  salesmen,  and  receiv- 
ing $1,500  per  annum.  The  one  did  all  that  was  gene- 
rally required  of  salesmen,  was  regular,  registered  and 
made  his  sales  as  he  should  do  ;  and  no  objection  could 
be  found  in  the  way  of  doing  his  business,  and  his  em- 
ployers were  satisfied  with  him,  and  he  was  worth  to  them 
the  amount  of  his  salary.  But  he  was  not  interested,  nor 
did  he  look  to  anything  further  than  his  own  particular 
department,  nor  did  he  make  any  special  effort  to  gain 
custom  for  the  house,  or  keep  an  eye  out  to  the  general 
run  of  the  business.  The  other,  on  the  contrary,  was 
always  busy  late  and  early,  had  something  more  to  do 
when  all  had  left,  and  was  always  found  in  the  store 
among  the  first  in  the  morning  ;  was  constantly  reaching 
out  to  get  trade  and  new  customers,  and  keeping  an  eye 
on  everything  that  transpired  ;  was  never  prying,  but  al- 
ways aiding  any  one  when  he  could,  and  keeping  every- 
thing in  order  as  far  as  possible  without  interference  with 
the  affairs  of  others  ;  made  himself,  by  his  agreeable  and 
pleasant  manners,  popular  with  customers,  and  with  all 
those  engaged  in  the  house,  and  by  such  a  course  was 
felt  from  cellar  to  garret.  Which  of  these  two  young 
men — for  they  were  both  twenty-three  years  of  age — 
earned  during  the  year  the  most  money  ?  .We  will  see. 
A  neighboring  house  having  lost  their  principal  salesman 


30  How  to  make  Money. 

by  death,  and  having  heard  of,  and  knowing  by  sad  expe- 
rience the  loss  of  valuable  customers  enticed  away  by 
this  active,  winning  salesman,  they  at  once  applied  to 
him  and  offered  him  $2500  a  year  if  he  wished  to  leave 
his  present  house.  Of  course  so  good  an  offer  was  not 
to  be  passed  unnoticed,  and  he  broached  the  subject  to 
the  members  of  the  house  in  which  he  was  employed,  and 
asked  if  they  had  any  objection  to  his  accepting  the  offer. 
To  which  they  replied,  "  We  will  consider  the  matter,  and 
let  you  know  in  a  day  or  so." 

This  fact  drew  the  attention  of  the  firm  to  investigate 
the  sales  made  by  this  young  man,  and  it  was  found  that 
he  had  brought  a  large  amount  of  custom  to  the  house, 
and  of  all  he  had  sold,  no  bad  debts  had  resulted.  They 
came  to  the  conclusion  that  he  was  more  valuable  to 
them  than  the  salary  of  $1500  ;  and  said  at  once,  "We 
will  make  your  salary  hereafter  $2500 ; "  and  so  he  re- 
mained, and  continued  to  exert  himself  still  more. 

Now  let  us  inquire  into  the  financial  condition  of  these 
two  salesmen.  The  one  spent  all  his  salary,  for  he  had 
more  time  on  his  hands  about  town,  and  less  to  interest 
him  than  the  other  ;  while  the  other  took  lodgings  near 
his  store,  seldom  went  anywhere,  and  read  most  of  his 
time  while  he  was  not  calculating  and  figuring  about  his 
business.  The  result  was  that  he  spent  $500,  and  saved 
$1000  of  his  salary.  The  next  year,  when  he  received 
$2500,  he  spent  the  same,  while  the  other  salesman  spent 
all  he  received  as  before. 

It  becomes  interesting  here  to  make  a  calculation  on 
even  these  low  figures.  We  will  make  it  for  two  years. 
The  one  had  nothing  to  lay  to  the  good — the  other  had 
$3000  at  the  end  of  two  years,  or  when  he  was  twenty-five 
years  old.     This,  put  at  compound  interest  at  seven  per 


How  to  make  Money.  31 

cent,  for  twenty-five  years,  or  until  he  was  fifty,  would 
amount,  as  shown  by  tables,  to  $16,290,  or,  if  he  had  con- 
tinued to  do  the  same  thing  yearly — namely,  gain  $2000 
until  he  was  fifty  years  of  age — it  would  amount  to 
$131,952  ;  a  snug  little  fortune  on  comparatively  very 
small  earnings. 

From  these  few  examples,  which  can  be  adapted  to  any 
conceivable  case,  after  an  examination  and  study  of  the 
tables  it  will  be  seen  where  the  fountains  of  wealth  lie. 
By  reflection,  the  necessary  qualifications  are  made  appa- 
rent how  the  most  money  can  be  made  by  increasing  the 
value  of  the  labor.  The  general  principles  which  result 
can  be  stated  to  be  — 

First. — Be  polite,  civil,  agreeable,  and  never  fail  to 
make  every  one  you  come  in  contact  with  interested  in 
yourself  and  what  you  are  doing. 

Second. — Do  what  you  have  to  do  for  another  so  that 
he  may  feel  that  you  are  working  for  his  interest. 

Third. — Do  what  you  have  to  do  in  the  best  way  pos- 
sible, and  endeavor  to  improve  on  every  repetition. 

Fourth. — Be  honest,  candid,  dignified,  and  social.  This 
inspires  confidence  and  increases  character,  reputation, 
and  influence. 

These  are  a  few  of  the  items  necessary  to  reach  the 
fountains  of  wealth,  and  to  observe  them  is  a  sure  means 
of  making  money  ;  to  neglect  them  is  a  sure  way  of 
losing  your  opportunity  to  do  so,  and  will  inevitably 

result  in  loss. 

2 


32  How  to  make  Mofiey. 


CHAPTER  IV. 

LABOR   AND    ITS    REPRESENTATIVE    MONEY. 

Wade  through  definitions. — Labor,  money.— Most  valuable,  most 
money. — Skill  controls. — Great  lesson  of  life. — Skill  and  natural 
ta6t. — Neutral  minds. — Skill  acquired. — Make  labor  valuable. — 
Male  and  female. — Employment  only  necessary. — Labor  repre- 
sented by  money. — Machinery  of  life. — Unit  of  action.—  Agri- 
cultural labor.  —  Allegory.  —  Illustration  of  values.  —  Natural 
products  and  implements. — Exchanges. — Barter. — Labor  di- 
vided. —  Results  beneficial.  —  Commerce  established.  —  Labor 
compared. — Most  skill  most  value. — Working  of  commerce. — 
Profits  resulted. — Credit  wanted. — Trade  from  necessity. — 
Worked  well. — New  avenues. — People  pleased.—  Representa- 
tion of  value  wanted. — Lucky  digging  for  silver. — Fits  the  case. 
Trouble  worked  out. — Ships  built. — Rowing  and  paddling. — ■ 
Ingenuity  sails. — Against  mind.  —  Delighted. — More  ships. — 
Allegory  ends. — Varieties  of  labor.— "Dollar  made,  dollar  saved. 
Intellectual  and  manual  labor. — Confines  of  barbarism  and 
civilization.  —  Combination.  —  Capital. — First  lesson. — Money 
values. — Aim  of  life. — Little  attention. — Carping. — No  extreme. 
— Light. — Say  it. — Better  people — Narrow-minded  philosophy. 
— Choose  for  yourself. — Hoarding  condemned. 

It  is  unfortunate  for  a  reader  who  takes  up  a  book  with 
the  idea  of  finding  interesting  matter  within  its  pages,  to 
be  compelled  to  wade  through  two  or  three  chapters  of 
definitions.  But  the  one  who  expects  to  gain  information 
must  at  least  expect  to  be  taught  the  meaning  of  the 
terms  in  which  the  information  is  to  be  conveyed.  The 
meaning  of  the  term  labor,  is  no  doubt  well  understood 
by  many  ;  and  that  money  is  its  representative,  is  equally 
well  known.  But  to  the  money-maker  who  expects  to 
use  labor  as  the  means  of  procuring  it,  he  must  be  made 
aware  that  there  are  various  kinds  of  labor,  and  the  same 


How  to  make  Money.  33 

kind  varies  greatly  in  quality,  and  that  some  kind  of 
labor  commands  more  money  for  the  same  time  than 
other  kinds,  and  that  the  better  the  quality  of  labor  the 
higher  price  it  will  secure. 

A  hod-carrier  cannot  obtain  the  wages  of  a  mason, 
although  they  work  at  the  same  general  business  ;  nor 
can  an  apprentice,  or  a  poor  mason,  command  the  pay  of 
a  skilful  one,  although  they  are  each  masons.  It  is 
apparent,  without  a  lengthy  argument  or  illustration,  that 
labor  is  valuable  just  in  proportion  to  its  quality,  and  in 
this  respect  does  not  vary  from  any  article  of  merchan- 
dise, or  of  purchase  and  sale.  As  labor,  too,  is  the  only 
means  by  which  value  can  be  created,  the  rule  of  its 
quality  extends  from  the  simplest  form  of  labor  to  the 
most  intricate.  The  man  who  handles  the  shovel  can 
display  skill  over  another  who  may  have  equal  strength 
and  as  good  a  tool.  One  banker  may  in  like  manner  use 
more  skill  than  another  banker  having  like  opportunities 
and  equal  capital.  One  merchant,  with  small  means  and 
poor  opportunity,  may  far  outstrip  another  in  making 
money  who  may  have  larger  means  and  a  far  superior 
chance. 

This  difference  in  the  quality  of  the  same  kind  of  labor 
is  called  skill,  and  is  a  controlling  feature  in  fixing  the 
value  of  labor.  It  is  a  general  guarantee  of  success  in 
life,  or  in  the  business  in  which  it  is  displayed.  It  ele- 
vates its  possessor  above  his  tradesmen  or  peers,  and 
makes  his  labor  always  in  demand.  It  is  an  advertise- 
ment in  his  business  and  an  endorsement  of  ability  be- 
fore the  public.  It  applies  equally  to  all  descriptions  of 
labor  without  an  exception,  and  is  a  controlling  quality 
in  the  choice  of  a  purchaser  when  known. 

If  you  wish  a  mechanical  job  done,  you  will  employ  the 


34  How  to  make  Money. 

best  man  you  know,  by  which  is  meant  tne  most  skilful, 
and  the  one  who  will  take  the  least  time  in  which  to  do 
it,  and  hence  will  cost  the  least  money.  If  you  wish  a 
physician,  or  a  lawyer,  if  the  case  be  worth  it,  and  you 
are  able  to  pay  the  amount  charged,  you  will  procure  the 
best  one  that  you  know.  If  you  wish  to  have  a  lot  of 
goods  purchased  by  a  broker,  a  commission  merchant,  or 
any  other  expert,  you  will  employ  the  one  who  is  the 
most  skilful  in  the  market.  If  you  wish  a  draft  collected 
in  foreign  parts,  you  will  employ  the  best  banker.  If 
you  want  your  property  insured,  you  will  employ  the 
best  broker,  for  he  is  supposed  to  know  the  best  com- 
panies. 

There  is  no  exception  to  the  rule  that  he  who  is  most 
skilful  commands  the  readiest  employment,  and  hence 
it  is  that  every  one  desirous  of  making  money  should 
fully  understand  what  this  skill  is.  When  they  shall 
apprehend  what  it  is,  they  should  then  be  informed  how 
to  obtain  it.  This  is  the  great  lesson  of  life,  and  upon 
its  being  well  or  imperfectly  learned  depends  the  proba- 
ble success  or  failure  of  the  individual.  It  applies  with 
equal  force  to  the  female  as  it  does  to  the  male.  The 
female  has  within  her  reach  in  like  manner  the  power  to 
make  herself  independent,  and  still  preserve  the  delicacy 
of  her  sex.  Let  no  female,  then,  shrink  from  the  task  of 
making  herself  skilful  in  her  avocation,  whether  it  be  in 
the  gilded  halls  of  fashion,  the  more  modest  one — the 
recipient  of  admiration,  or  the  humbler  one  of  the  opera- 
tive, or  the  climax  of  female  hopes — the  matron  or  mother. 
Skill  will  tell  in  each  and  every  department  of  female 
life,  and  the  success  of  such  will  measurably  depend  upon 
this  cardinal  of  advancement. 

Natural  skill  is  the  adaptation  of  natural  tacl  to  acquired 


How  to  make  Money.  35 

knowledge.  Natural  tact  is  the  natural  bent  of  the  mind. 
Some  minds  are  mechanical,  some  calculative,  some 
imaginative,  some  ingenious,  some  shrewd,  some  appa- 
rently neutral,  displaying  all  qualities  alike ;  some  evincing 
a  predominance  fitting  them  for  one  department  of  life, 
and  some  for  another.  In  the  choice  of  employment  it 
is  useless  to  say  that  each  individual  would  do  well  to 
follow  the  natural  bent  of  his  mind,  which  would  give 
him  tact  in  his  business,  and  that  would  tend  to  give 
him  skill.  Skill  may  be  obtained  in  any  department  of 
life  by  perseverance  and  industry,  without  the  presence 
of  natural  tact.  It  is  hence  so  much  easier  to  accom- 
plish, and  the  labor  generally  performed  so  much  more 
agreeably  and  pleasantly  that  every  person  should,  as  far 
as  practicable,  follow  the  natural  bent  of  his  mind  in 
the  selection  of  business.  This  is  well  to  know  when  the 
individual  is  free  to  choose  ;  but  many  persons  are 
thrown  into  employments  accidentally,  and  in  such  cases 
their  success  may  be  aided  by  natural  tact  and  may  not. 

Skill,  whether  natural  or  acquired,  is  the  great  guaran- 
tee of  success  in  business  of  any  kind.  There  may  be 
partial  or  limited  success,  or  through  circumstances,  a 
splendid  success  by  the  greatest  blunderer ;  but  the  excep- 
tion does  not  detract  from  the  value  of  the  rule.  Those 
who  look  to  these  exceptions  for  a  road  to  lead  them  to 
the  temple  of  fortune  will  wear  away  their  lives  in  poverty 
and  disappointment. 

Skill  is  to  be  acquired  by  knowledge  and  experience. 
A  chapter  could  be  written  on  the  qualities  of  mind  of 
persons  desirous  of  obtaining  a  fortune,  in  order  to  give  a 
full  explanation  of  the  knowledge  and  experience  required 
for  that  end,  and  what  skill  does  in  various  occupations. 
It  is  only  necessary  to  speak  generally  of  it  here,  in  order 


36  How  to  make  Money. 

to  explain  the  meaning  of  skill,  to  show  the  value  of  dif- 
ferent qualities  of  the  same  kind  of  labor.  The  more 
knowledge  a  person  possesses  respecting  his  occupation, 
the  more  modes  he  understands  of  doing  the  same  thing, 
and  he  is  enabled  to  choose  the  best.  If,  however,  he 
has  never  tried  either  mode,  and  does  not  know  that  it  has 
been  tried  by  others,  he  is  wanting  in  experience  as  well 
as  in  knowledge,  and  he  is  as  likely  to  do  it  to  a  disad- 
vantage as  he  is  to  do  it  in  the  best  and  most  skilful  way. 
Knowledge  may  be  obtained  by  reading,  or  orally,  or  by 
personal  experience,  and  the  greater  such  may  be,  the 
more  skilful,  as  a  general  rule,  is  the  laborer,  it  matters 
not  what  kind  of  labor  he  is  performing. 

The  money-seeker  must  then  understand  that  to  be 
the  most  skilful  in  his  kind  of  occupation,  it  matters  not 
what  it  may  be,  is  the  first  and  greatest  step  towards 
making  money.  To  be  simply  satisfied  with  knowing 
how  to  perform  his  vocation,  may  give  him  the  means  of 
a  comfortable  living  ;  but  if  he  wants  more,  he  must  in- 
crease by  skill  and  knowledge  the  value  of  his  labor,  and 
he  will  have  no  difficulty  in  finding  a  ready  market  for 
it ;  or,  as  will  be  seen  in  a  future  chapter,  must  econo- 
mize his  earnings  and  deny  himself  everything  except 
the  bare  necessaries  of  life  until  he  shall  have  saved  by 
this  means  what  he  fails  to  make  by  skill  in  his  business. 
For  let  it  be  remembered  that  there  is  no  male  or  female, 
with  able  body  and  sound  mind,  who  can  gain  employ- 
ment, that  cannot  in  time  make  himself  independent  of 
manual  labor,  or  independent  of  the  labor  of  his  voca- 
tion. 

Employment  is  all  that  is  required,  and  that  is  to  be 
obtained  by  having  a  knowledge  of  what  you  undertake. 
Skill  will  prove  the  way  in  which  the  labor  will  be  accom- 


How  to  make  Money.  37 

plished  for  a  profitable  end,  as  a  general  thing.  Misfor- 
tune may  overtake  the  most  skilful.  This  should  not  pre- 
vent the  effort  to  obtain  skill  and  superiority,  but  should 
act  as  an  incentive  to  prepare  beforehand  for  such  con- 
tingencies. This  must  show  any  one  in  search  of  money 
that  labor  is  the  only  sure  mode  of  obtaining  it.  Now 
it  must  be  shown  how  labor  can  be  represented  by  money. 
The  representation  of  labor  by  money  depends  upon  the 
relative  value  of  the  different  kinds  of  labor  ;  that  is,  the 
relative  exchange  of  one  labor  for  another  of  a  different 
kind.  And  in  order  that  the  money-maker  may  under- 
stand the  principles  upon  which  his  labor  is  valuable  in 
money,  and  why  money  will  release  him  from  labor,  it  is 
necessary  to  show  him  how  his  labor  can  be  represented 
by  money  in  the  first  place,  and  then  show  him  how  he 
can  command  the  labor  in  like  manner  of  others,  or  how 
he  can  supply  his  wants  with  money  without  labor. 

The  machinery  of  life,  to  the  casual  observer,  seems 
confused  and  uncertain.  He  looks  around  him  and  sees 
such  a  variety  of  trades  and  occupations — such  a  swarm- 
ing of  people  in  cities — such  worlds  of  nations  all  moving 
together  in  harmony  of  life — that,  it  amazes  and  surprises 
him.  But  let  him  once  get  the  unit  of  this  combined 
action,  and  it  all  reveals  itself  as  simply  as  the  confused 
crowd  of  figures  in  the  multiplication  table  was  revealed 
to  his  youthful  wondering  eyes  when  he  became  aware  of 
the  use  of  the  unit  in  figures. 

Agriculture  was  the  primeval  representation  of  labor, 
whether  that  labor  was  performed  by  gathering  the 
natural  fruits  of  the  earth  or  by  a  successful  endeavor  to 
reproduce  them  in  kind.  The  effort  to  reproduce  them 
required,  as  we  well  know,  the  turning  up  and  the 
smoothing  down,  and  the  general  working  of  the  ground. 


3^  How  to  make  Money. 

i 
It  matters  little  whether  this  labor  was  performed  by  one, 
by  two,  or  by  a  nation  in  this  manner  ;  there  was  a  time 
when  some  rude  instrument  was  used  by  the  agriculturist 
to  supply  the  place  of  hands  to  upturn  the  earth  and 
work  it.  We  will  pass  by  all  anterior  modes  of  inter- 
changes between  these  primeval  agriculturists,  and 
assume  the  point  when  they  found  it  convenient  or 
necessary  to  use  implements  in  tilling  the  ground ;  and 
here  the  allegory  explaining  the  machinery  of  society  as 
it  now  exists  begins. 

There  was  in  the  far  recesses  of  the  past  a  community 
of  agriculturists,  and  they  occupied  quite  a  territory  of 
land  productive  and  beautiful  to  behold.  They  gathered 
the  fruits  which  overhung  the  land,  and  lived  and  in- 
creased in  numbers.  The  natural  products  being  insuffi- 
cient to  supply  such  numbers,  and  seeing  that  seeds  grew 
and  produced,  they  turned  their  attention  to  planting  the 
seeds  in  the  ground,  and  they  were  rewarded  with  a 
harvest.  They  found  that  digging  in  the  ground  with 
their  hands  and  with  sticks  was  a  slow  and  tedious  pro- 
cess ;  and  an  ingenious  man  conceived  the  idea  of  making 
a  hoe,  a  rude  construction  to  be  sure,  made  of  stone,  and 
a  hole  in  it  for  a  handle.  He  was  enabled  to  do  as  much 
with  his  hoe  as  four  or  five  would  do  with  their  hands 
and  sticks,  and  this  his  neighbors  saw,  and  endeavored 
to  follow  his  example  and  make  a  hoe  for  themselves. 
So  the  inhabitants  all  set  to  work  to  make  hoes  ;  but 
when  they  went  to  get  the  stone  out  of  which  to  make 
them,  some  had,  and  some  had  not,  the  right  kind  of  mate- 
rial ;  and  the  result  was,  some  succeeded  and  some  did 
not  succeed  in  accomplishing  their  object. 

Here  was  a  spur  to  those  who  could  not  make  hoes  to 
get  them  in  some  shape ;  and  the  idea  occurred  to  them  to 


How  to  make  Money.  ■    39 

get  the  man  who  made  the  first  hoe,  and  who  had  plenty 
of  material,  to  make  for  them  also.  So  application  was 
made  by  a  near  friend  to  the  hoe-man  to  make  a  hoe ;  and 
being  a  good-natured  and  obliging  fellow,  he  consented, 
and  made  his  friend  a  hoe.  Another  and  another  did 
the  same,  till  the  man  found  he  had  no  time  for  anything 
else,  and  finally  had  nothing  to  eat.  "  This  will  not  do," 
said  he ;  "  I  must  have  something  to  live  on,  even  if  I 
disoblige  my  friends  ; "  and  revolving  the  thing  over  in 
his  mind,  an  idea  occurred  to  him.  Said  he  to  himself: 
"  If  I  spend  my  time  in  making  hoes  for  my  neighbors, 
why  should  they  not  spend  their  time  in  raising  grain  for 
me  ? "  After  reflecting  on  the  thing  for  a  few  days,  he 
determined  to  make  a  stand,  and  not  make  any  more 
hoes  ;  and  assigned  as  a  reason  that  he  had  nothing  to 
eat,  and  must  go  to  work  and  raise  something. 

The  man's  neighbors,  for  whom  he  had  made  hoes, 
saw  at  once  the  injustice  of  taking  his  time  and  leaving 
him  to  starve.  So  each  one  made  up  in  products  just 
what  they  thought  he  might  have  earned  at  agriculture 
and  a  little  more  on  account  of  his  having  the  material 
out  of  which  he  constructed  them,  and  sent  the  amounts 
respectively  to  him.  Of  course  the  man  was  pleased,  and 
at  the  same  time  amazed  at  the  accuracy  with  which  each 
one  had  judged  with  the  other  the  amount  to  be  given 
for  each  hoe.  The  man  reflected  upon  it  for  some  time, 
and  said  to  himself :  "  I  have  more  products  given  me 
for  my  hoes  than  I  could  have  raised  out  of  the  earth  in 
the  meantime  in  making  them  ;  and  instead  of  being  just 
as  well  off  as  my  neighbors,  behold  I  am  better  off,  and 
have  a  surplus."  The  man  determined  at  once  to  make 
more  hoes,  and  give  notice  to  those  whom  he  had  re- 
fused that  he  would  make  for  them,  and  take  grain  in 


40  How  to  make  Money. 

payment  therefor.  The  man  was  driven  very  hard  to 
supply  all  with  hoes  who  wanted  them,  and  the  grain 
poured  in  so  fast  upon  him  that  he  could  not  consume  it. 

About  this  time  it  was  rumored,  that  a  man  living  at 
a  distance  had  made  some  cloth  out  of  bark  in  a  very 
peculiar  way ;  and  the  people  in  that  vicinity  found  in 
like  manner  as  with  the  hoe,  that  they  could  get  this 
cloth  for  grain ;  and  although  the  cloth  they  made  them- 
selves answered  their  purposes  very  well,  still  this  other 
cloth  was  handsomer  and  suited  their  tastes  and  fancies 
better  than  their  own.  The  result  was,  that  the  cloth- 
man  had  very  soon  more  to  do  than  he  could  well  attend 
to  himself,  and  was  overstocked  with  grain.  A  man 
who  was  an  agriculturist,  and  also  an  ingenious  man, 
knowing  this  state  of  things,  went  and  proposed  to  the 
cloth-man  to  leave  his  agriculture  and  join  him  in  mak- 
ing cloth.  The  cloth-man  was  pleased  to  have  some  one 
to  help  him,  as  he  had  more  to  do  than  was  agreeable, 
and  at  once  consented  to  let  the  agriculturist  join  him. 

And  they  commenced  working  together.  But  they 
had  not  worked  but  a  day  or  so  on  the  cloth,  when  it 
became  apparent  that  the  one  did  twice  as  much  as  the 
other,  and  twice  as  well.  This  did  not  at  first  seem  to 
make  much  difference,  as  the  one  was  delighted  to  have 
some  one  to  help  him,  while  the  other  was  equally  de- 
lighted, and  expected  to  get  as  much  grain  as  the  one 
who  had  worked  at  the  cloth  so  long.  They  both  worked 
"on  very  well  satisfied  with  each  other,  the  neighbors 
bringing  in  products  every  day  or  so,  and  taking  away 
some  of  the  cloth.  It  soon  became  apparent  that  they 
all  preferred  the  cloth  of  the  Original  Jacobs,  and  the 
agriculturist's  cloth  was  left  on  hand.  This  did  not  seem 
to  make  any  difference,  till  one  day  they  had   none  of 


How  to  make  Money.  41 

Jacob's  cloth,  and  they  wished  a  customer  to  take  some 
cloth  made  by  the  agriculturist.  "  Well,"  said  the  custom- 
er, "  if  you  have  none  of  the  other  J  do  not  care  for  this, 
for  we  can  make  as  good  as  that  ourselves."  And  so  the 
man  went  away  and  would  not  leave  his  grain.  Then  they 
tried  with  others  to  exchange  the  agriculturist's  cloth 
for  grain,  but  with  no  better  success  ;  and  they  were 
both  exceedingly  unhappy,  and  did  not  know  what  to  do. 
As  the  hoe-man  had  heard  of  the  cloth  made  at  a  dis- 
tance, and  had  seen  some  worn  by  a  traveller  who  had 
passed  his  way,  and  also  heard  that  the  man  would  take 
grain  for  his  cloth  as  he  had  done  for  his  hoes,  after 
thinking  the  matter  over  for  some  days,  he  determined  to 
have  some  of  the  cloth.  The  next  thing  occurred  to  his 
mind  was  to  know  how  he  was  to  get  it,  and  how  he  was 
to  get  the  grain  so  far.  He  mused  upon  it  for  some 
time.  Said  he  :  "  If  I  go  myself  and  carry  my  grain,  it  will 
take  me  certainly,  six  days.  In  that  time  I  can  make  ten 
hoes  that  will  bring  me  ten  measures  of  grain,  and  they 
say  I  shall  be  obliged  to  give  the  cloth-man  ten  measures 
more  for  what  I  want.  So  when  I  get  back,  my  cloth  will 
cost  me  twenty  measures  of  grain.  Let  me  see  ;  I  know 
a  friend  going  that  way,  and  possibly  he  would  take  my 
grain  and  get  my  cloth.  I  will  see  him  about  it."  He 
had  scarce  ended  the  sentence  when  his  friend  came  in 
and  began  to  speak  of  this  same  cloth,  and  told  the  hoe- 
man  that  he  was  going  to  make  a  journey  there  to  get 
some  of  the  cloth.  "  And,"  said  he,  "  a  traveller  who  has 
passed  this  way  told  me  that  he  heard  a  man  say,  who  was 
an  agriculturist  near  by  the  cloth-man,  that  they  had  heard 
of  your  hoes  over  there  and  wanted  some  ;  but  it  was  too 
far  to  carry  the  grain,  and  they  had  not  come  for  them, 
Now  an  idea  has  occurred  to  me  to  carry  some  of  these 


42  How  to  make  Money. 

hoes  over  there  and  see  if  I  can  get  grain  for  them,  and 
then  the  grain  being  on  the  spot,  I  can  easily  get  the 
cloth — what  do  you  think  of  it  ? " 

"Well,"  said  the  hoe-man,  "I  see  no  objection  to  it 
whatever.  And  another  thing,  Mr.  Commerce  (for  that 
was  his  name),  I  want  some  of  that  cloth  myself,  and  as 
you  are  going  there,  could  you  get  some  for  me  also  ? " 

"  Certainly,"  replied  Mr.  Commerce,  "  I  would  willingly 
oblige  you  ;  but  I  cannot  carry  either  grain  or  hoes  enough 
to  get  there  and  back  in  a  week's  time,  but  will  do  it  as 
quickly  as  I  can." 

Now  the  hoe-man  was  a  good,  honest,  and  clever  soul ; 
and  although  Mr.  Commerce  was  ready  and  willing  to 
oblige  him,  and  get  his  cloth  and  carry  his  hoes  without 
compensation,  he  would  not  make  ten  measures  of  grain 
or  ten  hoes  out  of  his,  Mr.  C.'s,  labor  without  compensa- 
tion, for  he  had  had  a  taste  of  that  himself.  So  he  told 
Mr.  Commerce  what  it  would  cost  him  to  go,  and  frankly 
offered  him  the  ten  hoes  or  ten  measures  of  wheat  if  he 
would  bring  back  the  cloth  with  him.  Although  Mr. 
Commerce  had  the  reputation  of  being  very  shrewd  and 
cunning,  yet  he  had  wisdom  enough,  and  principle 
enough,  too,  not  to  extort  from  the  hoe-man  more  than 
was  fair,  and  he  said  he  would  take  the  matter  into  con- 
sideration. In  a  day  or  so  he  called  again  on  the  hoe- 
man,  and  in  the  meantime  he  had  seen  one  of  his  neigh- 
bors who  had  heard  of  this  same  cloth,  and  who  also 
wanted  just  as  much  as  the  hoe-man  wanted.  Mr.  Com- 
merce, being  a  calculating  and  really  a  shrewd  man,  said 
to  himself :  "  If  I  can  make  something  from  the  hoe^-man, 
and  something  from  my  neighbor,  who  knows  but  what  I 
may  make  enough  to  get  my  cloth  for  nothing  ? "  The 
idea  stimulated  him  greatly,  and  he  went  about  to  see  if  i 


How  to  make  Money.  43 

some  one  else  did  not  want  this  cloth  also,  for  they  had 
all  by  this  time  heard  of  it.  He  was  well  rewarded,  for 
very  many  who  had  raised  more  grain  than  they  could 
use,  because  their  new  hoes  had  helped  them  so  much, 
were  anxious  to  get  this  cloth,  and  more  particularly 
since  they  had  heard  the  hoe-man  was  going  to  get 
some. 

The  result  was,  that  Mr.  Commerce  began  to  count 
up,  and  found  that  if  all  were  supplied  it  would  take  all 
the  hoes  the  man  had,  and  it  would  be  utterly  impossible 
for  him  to  carry  so  many.  So  he  set  his  wits  to  work  to 
see  how  he  could  carry  them,  and  finally  hit  upon  an 
expedient.  He  conceived  the  idea  of  tying  the  hoes 
together,  and  balancing  them  across  the  back  of  an  oxr 
and  driving  the  ox  before  him  to  the  distant  land.  The 
plan  was  divulged  to  the  neighborhood,  and  all  seemed 
much  pleased,  because  it  amounted  to  a  contraband  for 
each  one  to  go  separately. 

An  unexpected  trouble  occurred  at  this  juncture,  not 
thought  of  before  by  Mr.  Commerce,  and  entirely  new 
to  the  hoe-man.  It  now  occurred  to  Mr.  C.  that  he  had 
not  grain  enough  to  give  for  the  hoes,  and  how  to  arrange 
that  matter  he  did  not  plainly  see.  So  he  went  to  the 
hoe-man,  told  the  whole  story  to  him,  and,  being  a  sen- 
sible man,  he  said :  "  As  you  will  return  in  a  week,  and 
as  I  have  these  hoes  on  hand,  and  have  grain  enough  to 
last  me  some  time,  and,  to  tell  you  the  truth,  I  cannot 
just  now  take  in  so  much,  but  will  be  able  to  do  so  by 
the  time  you  return,  you  can  take  the  hoes,  and  when 
you  do  return  with  the  cloth  our  neighbors  can  bring  in 
the  grain.     If  this  is  satisfactory  to  you,  it  is  so  to  me." 

It  is  needless  to  say  the  parties  perfectly  agreed  with 
each  other,  and  the  entire  arrangement  was  carried  out, 


44  How  to  make  Money. 

and  all  arrived  safely  at  their  destination.  Mr.  Dimity 
and  Mr.  Headlong,  for  these  were  the  cloth-makers,  had 
in  the  meantime  been  thinking  over  the  quandary  in 
which  they  had  placed  themselves.  Mr.  Dimity  had 
none  of  his  own  cloth,  and  none  on  hand  except  that 
made  by  Mr.  Headlong.  They  were  talking  this  matter 
over  when  Mr.  Commerce  arrived  in  the  country.  Pie 
left  his  ox  some  way  back  upon  the  road  in  a  little  grove, 
and,  tying  him  to  a  tree,  placed  some  food  before  him, 
and  started  for  the  abode  of  Mr.  Dimity  with  one  of  his 
hoes.  After  a  few  passing  remarks,  Mr.  C.  inquired  of 
Mr.  Headlong,  for  he  happened  to  speak  to  him  first, 
"  if  he  was  the  maker  of  certain  cloth,  which  was  con- 
sidered very  good  ? "  To  which  Mr.  Headlong  replied  in 
the  affirmative,  and  showed  him  such  as  he  had  made. 

"  The  cloth  suits  me,"  replied  Mr.  C. ;  "what  do  you  ask 
for  it?"  and  the  price  named  was  just  what  Mr.  C.  had 
supposed  it  would  be.  "  Whether  I  take  any  or  not  will 
depend  upon  whether  you  can  take  what  I  can  give  you 
in  return  for  it,"  said  Mr.  C.  "  I  have  here  a  hoe,  an 
agricultural  instrument,  by  which  much  more  grain  can 
be  raised  by  one  person  than  with  the  bare  hands  and 
sticks,"  said  Mr.  C. 

"  I  have  heard  of  that  instrument,"  said  Mr.  Headlong, 
"and  some  one  of  my  neighbors  was  saying  that  he 
wanted  one,  as  he  had  heard  them  spoken  of  very  highly." 

"  You  can  try  it,  and  see  how  you  like  it ;  and  if  you 
do,  then  I  will  make  you  a  proposition/'  said  Mr.  C. 
The  result  was  that  Mr.  Headlong  was  pleased  with 
the  hoe,  and  regretted  much  that  this  was  the  only  one 
Mr.  C.  had  brought,  as  he  had  seen  several  who  were 
anxious  to  procure  one.  The  price  was  asked,  and  Mr. 
C.  stated,  "  that  they  sold  where  they  were  made  for  ten 


Hozv  to  make  Money..  45 

measures  of  grain,  and  it  could  not  be  expected  to  bring 
them  so  far  and  sell   them  at  the  same  here." 

"  No,"  replied  Mr.  Headlong,  "I  will  willingly  give  you 
equal  to  fifteen  measures  of  grain,  payable  in  cloth,  for 
this  one,  and  if  you  had  more  I  would  take  them  on  the 
same  terms." 

"  Your  offer  is  very  liberal,  Mr.  H.  How  many  would 
you  take  on  those  terms  ? " 

"  All  you  have,"  quickly  replied  Mr.  H. 

"  Then  I  will  let  you  have  thirty,"  replied  Mr.  C. 

"  I  do  not  know  that  I  have  cloth  enough  made  to  give 
you  all  of  it  now,  but  I  will  see,"  said  Mr.  H, 

The  result  of  the  barter  was  that  Mr.  C.  took  back  of 
Mr.  Headlong's  cloth  sufficient  to  pay  for  the  thirty  hoes, 
and  had  made  the  value  of  fifteen  more,  and  had  it  in  cloth. 

Dimity  and  Headlong  sold  their  thirty  hoes  to  the 
surrounding  neighbors,  and  received  more  grain  for  them 
than  they  could  have  sold  their  cloth  for.  In  fact,  the 
people  were  all  so  well  pleased,  and  so  entirely  satisfied, 
that  Mr.  Commerce  became  very  popular.  So  much  so, 
that  he  finally  determined  to  establish  himself  midway 
between  the  countries,  so  that  he  might  extend  his  ope- 
rations to  all  sorts  of  things  which  were  just  being  intro- 
duced by  ingenuity  and  labor. 

As  the  people  increased  in  numbers,  and  the  articles 
of  use  became  more  abundant,  Mr.  Commerce  found  it 
next  to  impossible  to  exchange  one  thing  for  another, 
and  the  people  who  had  been  so  well  satisfied  with  his 
management  heretofore,  were  becoming  clamorous  and 
uneasy.  He  found  that  persons  came  from  a  great  dis- 
tance, and  instead  of  bringing  their  goods  along,  they 
were  compelled  to  leave  them  behind  ;  for  although  they 
were  valuable,  and  would  command  other  things  in  ex- 


46  How  to  make  Money. 

change  at  that  place,  their  bulk  prevented  their  profitable 
removal.  Finally  he  hit  upon  apian  by  which  one  could 
remove,  leaving  his  property  behind,  and  take  with  him 
the  representative  in  some  small  article  which  could  be 
easily  transported. 

Then  the  question  and  main  difficulty  arose,  how  this 
representative  should  be  made.  It  became  evident  from 
experience,  as  in  the  case  of  the  thirty  hoes  which  were 
sold  for  cloth,  that  what  would  represent  the  hoes  where 
they  were  made,  would  not  represent  them  where  they 
were  sold.  So  that  Mr.  Commerce  and  all  the  people 
whom  he  consulted  saw  at  once  that  a  hoe  could  not  be 
represented  everywhere  by  anything  but  itself,  and  they 
were  still  in  trouble.  As  wants  began  to  multiply,  sug- 
gested by  the  great  variety  of  little  things  made,  and 
people  increased  also,  every  one  found  it  very  inconve- 
nient to  barter  for  these  small  things,  and  in  many  cases 
the  people  had  to  part  with  more,  and  buy  more,  than 
they  wished  to  do. 

Finally  Mr.  Commerce,  who  was  an  ingenious  and 
very  useful  man  to  the  people,  hit  upon  a  plan  which  all 
thought  would  work  well,  and  be  a  great  benefit  to  every 
one.  He  proposed,  that  when  a  person  sold  anything 
he  should  have  something  to  represent  the  value  of  the 
price  at  which  the  thing  was  sold,  and  the  seller  should 
have  the  right  to  choose  whether  he  would  take  other 
things  in  exchange,  or  whether  he  would  take  the  agreed 
value,  as  arranged  between  the  buyer  and  seller.  This 
seemed  to  please  every  one  ;  but  still  there  was  a  trouble, 
and  that  was,  to  find  something  compact  which  could  be 
used  as  this  representative.  Some  proposed  pebbles, 
some  wood,  some  bits  of  leather,  and  some  one  thing, 
and  some  another.     But  all  such  things  they  found  would 


How  to  make  Money.  47 

not  do,  because  dishonest  people  could  make  any  quan- 
tity of  them  without  ever  having  had  in  their  possession 
anything  which  they  represented  in  value. 

About  this  time  a  lucky  circumstance  for  the  people 
occurred.  Some  men  were  digging  in  the  rocks  in  a 
neighboring  mountain,  and  discovered  a  metal  called 
silver  ;  and  as  they  had  never  seen  such  a  thing  before, 
they  labored  away  some  time,  only  procuring  as  much  as 
they  could  hold  in  their  hands.  They  at  once  conveyed 
it  to  Mr.  Commerce  to  know  what  it  was,  and  what  it 
was  worth,  and  supposed  as  a  matter  of  course  that  he 
would  know  all  about  it. 

"  This  is  a  strange  thing  to  me,"  said  Mr.  C. ;  "  where 
did  you  get  it  ? " 

"  In  a  neighboring  mountain,"  replied  the  men. 

"  Is  it  abundant  ? "  inquired  Mr.  C. 

"  By  no  means,"  said  the  men  ;  "  we  three  have  labored 
hard  six  days  each  to  get  what  you  have  in  your  hand." 

Now  Mr.  Commerce  was  a  quick-minded  man,  and  his 
experience  had  taught  him  much  wisdom.  A  thought 
occurred  to  him,  but  he  did  not  communicate  it  to  the 
men,  but  said  to  them  :  "  Go  back  to  the  mountain  and 
work  again  for  six  days,  and  bring  me  as  much  silver  as 
you  will  all  three  get,  and  I  will  pay  you  for  your  labor 
the  same  price  as  though  you  worked  in  the  field  at 
agriculture."  The  men  were  well  satisfied  and  departed, 
and  returned  at  the  end  of  the  six  days,  bringing  just 
about  as  much  as  they  had  brought  at  first.  Mr.  Com- 
merce paid  them  for  their  labor,  and  seeing  that  they 
could  get  as  much  for  this  kind  of  work  as  they  could 
for  any  other,  with  the  chance  of  finding  much  silver, 
they  returned  to  the  mountain,  and  worked  on  steadily. 
Other  men  hearing  of  this   silver,  started    into   other 


48  How  to  make  Money. 

mountains,   and   some   did,  and   some   did   not,   obtain 
any. 

Mr.  Commerce,  who  was  constantly  making  calcula- 
tions, kept  an  account  of  every  day's  work  that  was  done, 
cither  in  exploring  for,  or  working  at,  successfully  or 
otherwise,  this  silver-getting,  till  he  was  satisfied  that  no 
great  quantity  of  it  could  be  obtained  without  a  corre- 
sponding amount  of  labor.  It  had  occurred  to  him 
before  that  this  silver  might  be  used  as  the  representa- 
tive of  labor  ;  but  the  exact  way  in  which  it  could  be  used 
had  not  yet  occurred  to  him.  So,  after  a  considerable 
time,  he  added  up  all  the  days'  work  which  had  been 
done  at  this  silver-getting,  and  set  a  man  to  work  divid- 
ing up  the  silver  that  had  been  obtained  into  just  as 
many  pieces  as  there  had  been  days'  work  done  ;  and  he 
was  astonished  to  find  how  small  the  pieces  were.  He 
then  reasoned  with  himself  in  this  wise :  "  If  these  men 
have  worked  faithfully,  and  I  think  they  have,  the  result 
of  one  day's  labor  is  one  of  these  pieces  of  silver.  Now 
these  pieces  of  silver  are  small,  and  easily  conveyed  ;  can 
we  not  all  agree  to  make  these  pieces  of  silver  the  stand- 
ard of  labor  ?  Let  me  see  how  that  will  work.  Suppose 
one  man  cannot  do  as  much  as  another,  how  then  ?  As 
for  example,  suppose  one  man  should  do  twice  as  much 
as  another?"  And  his  own  proposition  seemed  to  bother 
him.  But  he  quickly  recovered,  and  said  to  himself: 
"  No ;  this  fixing  the  value  of  a  day's  work  by  a  given 
piece  of  silver  won't  do  ;  because  the  day's  works  will  not 
all  be  alike,  nor  if  alike,  will  they  always  produce  the 
same  value.  My  experience  teaches  me  that  value  is  a 
relative  term,  and  that  there  is  no  vahie  to  anything  with- 
out exchange,  or  that  will  produce  something  to  exchange. 
And,  too,  I  find   that  the  same  thing  will  not  always 


How  to  make  Money.  49 

bring  the  same  number  of  days'  work,  nor  is  it  of  the 
same  value.  It  seems  to  me,  then,  that  the  price  agreed 
upon  between  buyer  and  seller,  or  the  result,  should  in 
some  way  be  represented,  and  certainly  this  is  the  vahtz 
of  the  thing  or  things  at  the  time  and  place  as  agreed 
upon  by  the  parties.  Now  if  one  thing  is  five  times  as 
valuable  as  another,  if  we  can  represent  the  value  of  one 
thing,  we  can  easily  represent  the  value  of  another.  Just 
as  I  have  learned  in  figures  where  one  is  the  unit,  and 
any  number  of  results  can  be  represented  by  repeating 
the  unit  or  dividing  it.  Now  if  I  can  only  get  the 
people  to  agree,  why  not  use  one  piece  of  silver  to  be  the 
unit  to  represent  values,  or  agreed  upon  results,  between 
buyer  and  seller,  as  well  as  use  the  unit  one  a  figure  to 
represent  the  unit  of  results  in  figures  ?  " 

Mr.  Commerce  was  so  much  elated  with  the  idea  that 
he  at  once  called  all  the  people  together,  told  them  the 
whole  story,  and  asked  tjiem  what  they  thought  of  it. 
Some  thought  well  of  it  at  once  ;  others  did  not  under- 
stand it ;  and  others  had  so  much  confidence  in  Mr.  Com- 
merce, since  they  had  always  found  him  useful  and 
honest,  that  all  agreed  to  it  in  a  body.  Since  then  the 
results  of  labor  and  bargains  for  labor  itself  have  been 
represented  without  difficulty.  Everybody  took  their 
things  to  Mr.  C;  and  having  provided  himself  with  suf- 
ficient silver  for  the  purpose,  was  prepared,  after  they  had 
mutually  agreed  upon  the  value  of  what  was  sold  or  pur- 
chased, to  represent  the  result  in  silver,  and  paid  over 
the  balance  which  was  found  in  favor  of  the  seller  or 
buyer.  Soon  the  people  had  silver  themselves,  and  they 
would  frequently  go  to  their  neighbors  and  get  things  for 
the  silver,  just  as  they  had  formerly  exchanged  with  each 
other.     The  plan  worked  so  well  that  the  people  flocked 


50  How  to  make  Money. 

to  Mr.  Commerce  for  almost  everything,  and  took  almost 
everything  to  him,  and  his  business  increased  so  that  he 
was  compelled  to  build  ships  to  carry  things  from  one 
place  to  another,  and  have  them  rowed  and  paddled  by 
men.  This  took  away  so  many  men  from  other  pursuits 
that  it  became  a  serious  matter,  and  the  people  were  dis- 
satisfied because  that  raised  the  price  of  labor.  An 
ingenious  man,  seeing  what  was  wanted,  set  to  work  and 
made  a  ship  with  sails  to  it,  that  would  go  when  the  wind 
blew  without  either  being  rowed  or  paddled.  After  he 
had  it  all  completed  he  told  Mr.  Commerce  about  it,  and 
asked  him  to  look  at  it,  and  go  with  him  in  it  sailing. 
They  went,  and  it  happened  to  be  a  fine  day  and  a 
pleasant  wind,  and  the  ship  went  right  past  the  other 
boats  filled  with  men  rowing,  paddling,  and  tugging  away, 
much  to  their  amazement,  because  they  saw  no  oars  or 
paddles,  and  saw  a  few  people  standing  upon  the  ship 
doing  nothing.  When  the  ship  turned  about  to  return, 
and  the  ingenious  man  had  set  his  sails  so  as  to  go 
against  the  wind,  Mr.  Commerce  was  amazed,  for  he  had 
not  till  then  seen  the  utility  of  the  thing.  He  thought 
that  it  was  quite  easy  to  go  with  the  wind,  but  he  had 
not  seen  how,  it  would  go  against  the  wind  alone. 

Mr.  Commerce  at  once  made  an  agreement  for  the 
ship,  and  purchased  it,  paying  a  large  pile  of  silver  pieces 
for  it ;  more  than  the  man  could  carry.  The  ingenious 
man  had  more  silver  than  he  knew  what  to  do  with  ;  but 
he  went  immediately  about  making  others,  and  the  result 
was  the  people  were  delighted,  for  they  saw  at  once  by 
the  explanation  of  Mr.  C.  that  this  invention  of  sails  to 
the  ship  gave  them  just  so  many  more  able-bodied  men, 
and  increased  their  total  wealth  just  the  value  of  so  many 
more  days'  work  in  the  year. 


How  to  make  Money.  51 

The  entire  success  of  this  invention  to  save  labor,  01 
rather  increase  it,  induced  the  people  to  hold  out  great 
encouragement,  and  offer  large  rewards  to  any  ingenious 
person  who  would  in  like  manner  make  any  article  by 
which  more  could  be  accomplished  with  less  labor.  For 
the  people  saw  plainly  that  every  day's  labor  saved  was 
a  day's  labor  made.  The  result  was,  that  every  species 
of  contrivance  to  save  labor  was  resorted  to.  A  man 
made  a  mill  to  turn  by  water,  which  would  require  an 
immense  number  of  men  to  accomplish  the  same  thing ; 
another  made  an  engine  to  run  by  steam,  which  accom- 
plished wonders. 

The  people,  although  much  pleased  with  the  first  labor- 
saving  machines,  and  aware  that  they  saved  the  labor  of 
men,  soon  found  that  the  labor  at  first  saved  had  a  value 
nearly,  if  not  quite,  equal  to  manual  labor ;  but  as  the 
supply  of  that  kind  of  labor  increased,  it  diminished  in 
value.  The  same  with  the  water  power  and  the  steam 
power ;  although  each  was  the  representative  of  labor, 
each  had  its  value  according  to  the  demand  and  supply, 
just  like  manual  labor. 

The  allegory  must  end  here.  Enough  has  been  said 
to  show  the  rise  and  progress  of  commerce  from  barter 
to  the  more  easy  exchange  of  the  wants  of  high  civiliza- 
tion ;  from  the  first  form  of  manual  labor  in  agriculture 
to  higher  labor  of  motive  powers.  It  has  been  shown, 
too,  from  the  allegory,  how  labor  can  be  compared  with 
labor,  and  that  labor,  or  its  equivalent,  gives  value  to  all 
things,  and  how  the  things  themselves  are  compared 
with  each  other  in  value,  and  a  difference  obtained  as  the 
result,  and  how  that  result  is  represented  by  money. 

To  the  money-maker  the  lesson  is  not  only  necessary, 
but  is  valuable,  in  order  to  show  him  what  money  is,  and 


52  How  to  make  Money 

where  to  look  to  obtain  it.  Nor  need  he  be  ashamed  to. 
labor,  for  whoever  has  money  that  he  has  made  himself, 
has  labored  to  obtain  it.  There  can  be  no  escape  from 
the  disgrace,  if  disgrace  it  be,  to  labor — and  the  result  of 
that  labor  should,  perchance,  be  riches.  More  and  closer 
than  that,  even,  does  the  disgrace  cling ;  the  man  who 
has  a  dollar  in  his  pocket,  if  not  given  to  him,  or  not 
dishonestly  obtained,  has  labored  for  it,  and  the  dollar, 
before  he  came  in  possession  of  it,  was  the  repre- 
sentative of  some  one's  labor.  If  labor  is  a  disgrace, 
then  to  have  money  is  likewise  a  disgrace. 

Nor  can  all  labor  at  the  same  thing.  Honest  labor 
makes  honest  money,  and  when  it  finally  falls  into  the 
coffers  of  the  wealthy,  there  is  no  distinction  between 
one  dollar  and  another ;  and  so  there  should  not  be,  in 
any  rightly  balanced  mind,  any  invidious  distinction  be- 
tween one  kind  of  labor  and  another.  All  honest  em- 
ployments are  commendable  ;  nor  should  any  one  who 
is  willing  to  be  seen  spending  a  dollar,  be  ashamed  to  be 
seen  earning  one.  Education  and  refinement  are  what 
elevate,  and  make  wide  distinctions  between  individuals  ; 
and,  generally  speaking,  the  employment  is  indicative  of 
these  possessions.  On  this  account  it  is  that  one  employ- 
ment is  regarded  less  or  more  reputable  and  more  re- 
spectable than  another.  This  should  be  so  ;  for  he  who 
arms  himself  with  knowledge,  and  polishes  himself  of  the 
asperities  of  his  nature,  and  is  refined  and  elegant  in  his 
manners,  commands  a  higher  price  for  his  labor  than  he 
who  is  ignorant  and  takes  no  pains  to  accumulate  those 
qualities.  The  former  has  fitted  himself  for  higher  duties 
in  life  than  the  latter,  and  his  value  as  a  member  of  so- 
ciety is  greater  to  the  community,  and  hence  more  highly 
esteemed.      In   the   selection   of    employments   choose 


How  to  make  Money.  53 

those,  if  you  can  fit  yourself  for  them,  in  which  the  com- 
pensation is  greatest,  and  be  assured  they  will  require 
the  exercise  of  the  greatest  amount  of  skill,  and  the 
possession  of  the  greatest  amount  of  knowledge. 

The  two  great  natural  branches  of  labor,  the  intel- 
lectual and  the  manual,  are  never  entirely  separated. 
There  is  no  such  thing,  possibly,  as  purely  manual  labor 
without  some  intellect,  nor  is  there  purely  intellectual  labor 
without  something  of  the  manual.  There  is  nevertheless 
that  which  is  denominated  manual  labor,  and  that  which 
is  called  intellectual  labor,  and  the  two  may  be  said  to 
bound  the  kingdom  of  labor  on  each  confine.  Between 
these  two  extremes  all  possible  combinations  of  the 
manual  and  the  intellectual  take  place.  Upon  the  one 
confine  it  is  the  lingering  rays  of  barbarism,  and  upon 
the  other  the  full,  sure  light  of  civilization.  Those  two 
hands  of  labor  work  in  unison  to  produce  the  great  inter- 
mediate circulation  of  the  middling  classes,  and  all  chime 
together  to  make  the  harmony  of  society. 

As  intellectual  and  manual  labor  combined,  as  is  seen, 
produce  such  admirable  results,  there  is  still  another 
combination  of  each  of  them,  separately  or  together,  with 
concentrated  labor,  that  produces  still  higher  and  more 
brilliant  results.  Concentrated  labor  is  money,  or  what 
is  usually  termed  capital.  When  one  man  furnishes  the 
capital,  and  another  man  does  the  manual  and  intellectual 
labor  necessary  to  manage  it,  they  both  really  work  to- 
gether, the  one  with  money,  the  other  with  labor  not  yet 
turned  to  money. 

Capital  is  the  representative  of  labor,  and  is  obtained 
as  the  profits  of  labor,  or  is  the  surplus  of  the  proceeds  of 
labor  over  expenditure.  The  one  who  expects  to  make 
money  will  soon  find  himself  in  the  possession  of  capi 


54  How  to  make  Money. 

tal  if  he  is  successful.  It  is  regarded  by  most  people 
as  essential  to  a  full  and  fair  start  in  the  world.  Be  sure, 
however,  that  the  one  who  does  not  know  how  to  make 
capital  will  not  understand  how  to  handle  it  safely  and 
successfully  if  entrusted  to  him.  To  know  how  to  make 
a  dollar  and  save  it,  is  the  first  lesson  of  the  money-maker, 
and  is  generally  the  key  that  will  lock  up  safely  the  for- 
tune. This,  if  it  be  no  more  than  a  dollar,  is  capital ; 
small  to  be  sure,  but  yet  it  is  capital. 

When  Mr.  Commerce  wanted  to  take  the  hoes  of  the 
manufacturer  if  the  latter  had  refused  him  the  credit,  then 
would  have  been  the  time  to  use  capital.  For  Mr.  C. 
saw  that  he  could  make  by  the  operation  ;  and  if  he  had 
paid  down  for  them,  there  would  have  been  no  need  of 
asking  a  favor  of  the  manufacturer.  But  Mr.  Commerce 
got  on  just  as  well  without  as  he  would  have  done  with 
the  money.  Simply  because  the  manufacturer  had  confi- 
dence in  him  and  that  his  property  was  safe  in  his  hands. 

This  allowing  persons  to  take  property  for  a  time 
without  paying  for  it,  is  called  credit,  and,  as  has  been 
seen,  is  sometimes  just  as  good  as  ready  capital  in  order 
to  accomplish  the  objects  of  trade.  If  one  carpenter 
bonows  the  tools  of  another  and  uses  them,  he  has  bor- 
rowed and  used  capital,  and  in  just  as  complete  a  manner 
as  though  he  had  borrowed  their  market  value  in  money 
and  used  it  for  the  same  time.  Capital  may  be  in  money,  or 
it  may  be  in  money  values ;  in  either  case  it  is  the  repre- 
sentative of  labor,  and  its  name  is  generally  taken  to 
signify  money  or  money  values,  owned  by  the  possessor. 

These  definitions  and  explanations  are  all  deemed  neces- 
sary, in  order  to  expose  the  foundations  of  wealth  and  show 
what  it  is,  and  on  what  its  getting  and  possession  de- 
pend.     If  money  is  of  no  value  to  supply  wants,  then  it 


How  to  make  Money.  55 

is  of  no  value  as  a  source  of  comfort  and  pleasure,  and 
can  offer  no  inducement  to  the  seeker  after  fortune. 

To  explain  to  him  how  money  comes,  what  it  is,  and 
what  it  will  do,  is  quite  as  essential  as  to  point  out  the 
mode  of  procuring  and  the  mode  of  keeping  it. 

To  procure  money  is  the  object  of  the  entire  toiling 
world.  It  has  been  a  source  of  amusement  at  times  to 
hear  persons  condemn  the  individual  who  was  striving  to 
make  an  early  independence — even  go  further,  and  say 
money  was  not  worth  the  having.  Such  people  are  not 
honest  with  themselves,  for  if  they  had  either  the  chance 
or  the  ability  to  make  money,  they  would  be  the  first  to 
embrace  it.  Money-making  is  a  duty — a  political  duty. 
How  are  our  institutions  of  learning  to  be  kept  up,  our 
government  supported,  our  churches  filled,  our  school- 
houses  built,  our  children  brought  up,  clothed,  and  fed,  the 
aged  supported,  the  cripple  aided,  the  helpless  widows 
and  orphans  cared  for,  without  money  is  made  by  some 
one  ?  And  if  the  money-maker  has  the  disgrace  of  doing 
all  this,  then  such  disgrace  be  our  lot,  and  the  lot  of 
those  whom  we  wish  to  instruct  in  money-getting  and 
money-saving,  for  these  purposes,  and  thousands  of  others 
equally  worthy. 

There  is  no  subject  in  the  whole  range  of  life  that  has 
received  so  little  attention  from  the  pens  of  writers  as 
this.  Piles  on  piles,  nay  thousands  on  thousands,  of 
books  have  been  written  to  display  profligacy,  vice,  and 
ruin,  while  scarce  any  have  been  put  forth  to  urge  men 
to  save  instead  of  spending  their  substance.  Education 
of  every  sort  and  kind,  from  science  to  spiritualism,  is 
rampant  in  the  land  through  tall  edifices,  dotting  every 
acre  in  our  cities,  and  every  town  in  our  country  ;  yet  not 
comparatively  a  word  is  breathed  to  the  youth  or  to  the 

3 


$6  How  to  make  Money. 

middle-aged  to  educate  them  how  to  get  and  how  to  save, 
or  how  to  use  labor  and  knowledge  to  the  best  advantage. 
The  teacher  will  toil  with  his  pupil  for  days  and  weeks 
to  show  him  the  intricate  points  of  a  mathematical 
problem  which  shall  calculate  wealth  when  made,  and 
show  him  by  great  labor  where  he  will  make  his  own 
error  when  he  attempts  it  unaided  ;  but  not  one  lisp  will 
he  utter  to  tell  him  where  the  leak  will  probably  be  in  his 
finances,  which,  if  not  guarded,  will  consign  him  early  to 
poverty,  and  later  to  the  poor-house. 

This  book  will  probably  be  met  by  the  press  and  some 
carping  individuals,  as  most  books  of  this  nature  are,  by 
the  accusation  that  it  tends  to  degrade  the  human  heart 
to  money-making — to  make  the  young  mean  and  the  old 
miserly.  To  all  this  there  is  but  one  answer.  You  must 
not  educate  physicians,  because  they  may  give  too  much 
poison  ;  you  must  not  educate  in  oratory,  for  fear  of 
the  bronchitis  or  overstrain  of  the  lungs  ;  you  must  not 
educate  in  religion,  for  fear  of  making  bigots  ;  in  truth, 
you  must  not  educate  at  all,  for  fear  the  pupil  will  run  to 
extremes.  Mean  and  miserly  people  are  uniformly  those 
who  have  not  been  educated  or  brought  up  in  the  light 
of  knowledge,  but  who  know  just  enough  of  money  not 
to  know  its  real  use. 

Let  the  complaining  individual  choose  between  two 
estates — the  fear  that  his  son  or  daughter  might  be  mean 
with  money,  or  poverty  and  dependence  on  the  charity, 
and  live  on  the  earnings  of  some  other  individual.  This 
will  test  the  reason  and  the  soundness  of  murmurings 
against  a  work  on  educating  either  the  young  or  the  old 
in  the  art  of  making  or  saving  money.  Let  it  go  to  the 
extreme  even  on  both  sides,  that  they  absolutely  are 
mean  and  miserly,  and  in  possession  of  a  competency,  or 


How  to  make  Money.  57 

are  in  poverty,  subject  to  the  cold  charities  of  the  public 
authorities.  Which  do  you  choose  ?  If  you  are  truly 
honest  it  is  not  difficult  to  make  an  answer  for  any  parent 
or  friend. 

If  there  can  be  one  ray  of  light  shed  by  any  one  upon 
this  subject  to  make  the  young  or  the  old  economical, 
saving,  and. prudent  of  money,  let  it  shine  !  If  one  in- 
centive can  be  urged  by  eloquent  language,  or  attractive 
and  bewitching  pictures  of  the  future,  to  nail  the  well- 
earned  dollar  in  safety  for  the  hour  of  need,  let  the  words 
be  spoken,  and  the  pictures  be  stereotyped.  If  anything 
can  be  done  for  the  young  to  arrest  profligacy,  and 
thence  choke  out  vice,  let  no  man  complain  even  at  the 
risk  of  not  fully  educating  here  and  there  one  who  may 
become  mean  or  even  miserly.  If  any  book  can  be 
written  which  will  show  to  any  class  of  people  how  to  be 
more  prosperous,  how  to  increase  in  means,  how  to  avoid 
losses,  how  to  avoid  reverses  of  fortune,  how  to  live  better 
and  happier,  how  to  be  free  from  charities,  and  finally 
how  to  become  better  citizens'  and  better  members  of 
society,  let  the  book  be  printed  and  spread  broadcast 
over  the  land. 

Let  no  narrow-minded  philosophy  meet  it  in  the  way, 
and  say  "  hold ! "  Let  no  carping  lips  say,  "  You  will  make 
misers  of  our  children ; "  but  let  them  read — not  one 
thing  only — the  way  to  save — but  let  them  read  the  way 
to  make  money  also — the  very  lesson  which  every  parent 
wants  early  put  in  practice  upon  his  striving  child.  It 
is  a  false  philosophy  which  pretends  to  despise  money- 
making,  but  a  true  philosophy  which  condemns  in  un- 
measured terms  the  hoarding  of  riches. 


53  How  to  make  Money. 


CHAPTER  V. 

THE    SEEDS    OF    FORTUNES. 

Parental  cares. — Obligations. — Affections. — Visions  of  the  future. — 
Ambitions. — Education. — Most  important  neglected. — Married 
life. — Ignorance. — Company. — Like  stripe. — Break  up. — Yard- 
stick.— Bare  subsistence. — New  start. — Ship. — Not  a  mariner. 
— Storm. — Shipwreck. — Questions. — Inexperience  does  all. — 
Testators. — Lifetime. — Parental  anxiety. — Cause  of  early  fail- 
ure.— No  business  education. — Embryo  merchant. — Suddenly 
gifted — Swim,  my  child. — Must  learn  first. — Unnatural  mothers. 
- — Purchasing  without  knowledge. — At  twenty-one,  eleven  years 
a  merchant.  —  Calculations. — Astonishing  result. — Free  from 
charity. — Seeds  of  fortune. — Early  sown. — Children's  business, 
— Learns  how. — Great  epoch. — Starts  to  trade. — First  bargain. 
— Success. — Rules  of  action. — Time  consumed. — First  dollar 
nailed. — Spur  to  action. — School  and  collegiate  education. — 
How  managed. — Figures. — All  can. — Settlement  on  children. 
— Easy. — Useless  expenses. — Large  amounts. — Table. — How 
to  get  increase. — Conversation. — Rubbing  out  values. — Bank 
bills  on  your  back. — Big  loss. — Take  care. — Worldly  goods. — 
Independence. — Future. — No  poverty. 

"Just  as  the  twig  is  bent  the  tree  inclines."  Parents 
seldom  reflect:  how  much  responsibility  is  thrown  upon 
them  in  the  rearing  of  a  child.  First,  they  are  bound 
by  affection  and  by  the  law,  to  provide  food  and  clothing 
for  them,  and  are  responsible  for  all  their  depredatory  acts. 
Night  and  morning,  day  in  and  day  out,  they  watch  over 
and  provide  for  their  wants.  The  midnight  hour  sur- 
prises the  mother  in  some  pleasant  task  for  her  young, 
some  little  thing  which  the  business  of  the  day  crowded 
out  of  its  legitimate  place.  And  thus  the  days,  and  even 
the  years  roll  away,  and  as  the  youth  grows  the  cares 
continue,  and  never  cease. 


/ 


How  to  make  Money.  59 

Late  and  early  the  child  is  watched  to  keep  it  out  of 
harm's  way,  and  then  its  education  begins.  The  usual 
religious  devotions  are  lisped  over  night  and  morning, 
and  in  more  mature  speech  scraps  of  the  Catechism  are 
repeated  orally,  and  at  last  the  herculean  task  of  learning 
the  alphabet  is  crowded  upon  the  child's  memory.  The 
task  is  accomplished  ;  the  child  is  promising,  is  smart, 
and  is  rather  uncommon.  Bright  visions  of  the  future 
light  up  in  the  affection  of  the  parents  as  they  follow  in 
their  mind's  eye  the  gallant  young  man  of  twenty-one, 
captivating  crowds  of  admiring  young  ladies,  or  taking 
the  first  honors  in  some  high  institution  of  learning,  and 
just  about  entering  upon  the  path  of  life  which  will  lead 
him  to  honor,  wealth,  and  possibly  glory ;  or  a  daughter, 
whose  fair  form  they  see  gracing  the  halls  of  the  princely 
mansion,  or  drawing  around  her  dazzling  beauty  the 
fashion  of  the  land. 

These  visions  are  varied  at  any  new  feature  displayed 
by  the  beloved  offspring.  Ambition  seizes  possession 
of  the  hearts  of  the  parents,  and  they  determine  at  once 
to  crowd  the  mind  of  the  child  with  every  sort  of  know- 
ledge. Teachers  are  procured  accordingly.  Music,  danc- 
ing, French,  Italian,  Latin,  Greek,  with  reading  history, 
geography,  arithmetic,  and  belles-lettres  for  the  daughter, 
and  a  like  array  for  the  son.  The  education  becomes 
complete ;  the  daughter  soon  enters  the  round  of  sqciety ; 
is  admired,  is  courted,  is  won,  and  is  married.  The  son 
graduates  respectably  ;  either  enters  a  profession,  or  goes 
into  commercial  life.  And  now  begins  the  effect  of  an 
education  which  is,  entirely  on  a  wrong  basis,  or,  rather, 
the  most  important  thing  has  been  neglected. 

The  young  lady  has  married  either  a  man  who  has 
just  been  left  a  fortune,  or  is  out  of  his  time  as  a  clerk, 


60  How  to  make  Money. 

and  is  ready  to  go  into  business  on  his  own  account,  or 
some  other  similar  connection  ;  either  of  which,  under 
the  present  system  of  education,  will  in  a  very  few  years 
lead  to  the  same  result  in  nine  cases  out  of  ten.  The 
young  woman  being  suddenly  placed  in  charge  of  a 
house,  at  once  finds  that  she  knows  nothing  of  house- 
keeping, of  the  value  of  a  single  article  of  household 
goods,  or  what  the  realities  of  the  world  are  made  of. 
The  young  man  of  fortune,  her  husband,  is  worse  still, 
if  possible  ;  he  never  was  inside  of  a  market,  don't  know 
the  value  of  a  single  article  of  food,  and  scarcely  of  cloth- 
ing, or  how  to  purchase  one  article  for  his  table.  Ignor- 
ance reigns  supreme  over  the  household  about  all  matters 
except  what  is  denominated  a  good  education.  There  is 
money  enough,  to  be  sure  ;  and  as  for  the  price  of  vege- 
tables and  meats,  that  can  be  learned  very  soon — so  say 
they. 

The  servants  are  procured,  the  house  is  furnished  by 
some  one  who  happens  to  get  the  order,  and  the  horses 
and  carriage  are  at  the  door.  The  house  is  open  to  com- 
pany, and  the  new-married  couple  are  in  society.  Friends 
of  a  like  stripe  flock  around,  things  run  smoothly  for  a 
time,  the  red  flag  finally  hangs  out  of  the  window,  and 
the  next  you  hear,  the  lovely  couple  have  gone  to  Europe, 
and  in  four  or  five  years  you  may  see  the  rich  young  man 
measuring  off  tape  by  the  yard  in  some  shop  that  sold 
him  his  dry-goods.  This  is  not  an  overdrawn  picture, 
for  the  experience  of  almost  every  one  can  recall  to  mind 
similar,  if  not  exact,  fac-similes  of  results.  If  the  thing 
be  varied  in  any  way,  it  may  be  by  the  curtailment  of  the 
basis  of  the  first  start  in  life,  the  means  spent  having 
reduced  the  fortune  to  a  respectable  living,  if  not  to  a 
meagre  support  or  a  bare  subsistence. 


How  to  make  Money.  6\ 

Whatever  may  be  the  circumstances  of  any  who  are 
left  with  money,  not  one  in  a  hundred  retains  the 
original  amount.  Depletion  is  sure  to  follow,  as  a  rule, 
even  though  the  desire,  the  intention,  and  the  effort  be 
to  increase  instead  of  diminishing  it.  The  individual 
who  suddenly  becomes  possessed  of  wealth  by  inherit- 
ance or  chance  luck,  is  in  the  position  of  a  landsman  who 
suddenly  finds  himself  alone  on  shipboard  out  at  sea. 
To  be  sure  the  ship  is  there,  the  rudder  is  in  place,  the 
sails  are  all  bent,  and  under  a  fair  and  moderate  breeze 
he  may  have  skill  enough  to  hold  the  helm  aright,  and 
if  he  paid  but  little  attention  to  it,  if  the  ship  was  in 
trim,  all  would  go  well.  Some  skilful  and  experienced 
hand  had  accomplished  all  this,  and  a  moment's  reflection 
will  inform  the  most  superficial  mind  that  such  skill  and 
experience  were  not  the  work  of  a  day  or  of  a  year. 

The  inexperienced  mariner  has  his  inexperienced 
family  on  board.  From  want  of  attention  and  care  the 
sails  soon  become  mildewed,  and  split  with  the  first  gust 
of  wind  that  strikes  them;  the  yards  are  out  of  place ;  one 
gives  way  after  another,  till  weakness  prevails  in  every 
part  of  former  strength  and  symmetry.  The  first  storm 
finishes  the  rigging,  and  now  comes  the  danger  of  total 
shipwreck.  If  the  helpless  and  ignorant  seamen  can 
reach  the  land  in  safety  with  their  lives,  they  little  care 
what  becomes  of  the  floating  hull.  Nor  is  the  manage- 
ment of  a  fortune  less  difficult  to  perform  in  its  way  than 
the  management  of  a  ship  at  sea.  Ask  the  captain  of 
such  a  vessel  whether  he  would  place  a  son  of  his  in 
charge  of  such  a  ship  without  his  having  been  well 
grounded  in  the  theoretical  as  well  as  the  practical 
knowledge  of  seamanship  ?  Ask  him  whether  any  de- 
gree of  affection  would  induce  him  to  thus  expose  both 


62  How  to  make  Money. 

the  safety  of  the  ship,  and  the  life  of  his  son  ?  Ask  him, 
too,  what  were  the  probable  chances  under  such  circum- 
stances that  the  ship,  cargo,  and  souls  on  board  would 
reach  a  haven  in  safety  over  an  ordinary  sea-voyage  ? 
His  answer  would  undoubtedly  be  about  the  same  as  it 
would  be,  if  you  asked  the  head  of  a  banking-house  what 
would  be  the  result  of  his  business 'if  entrusted  to  the 
management  of  the  youngest  and  most  inexperienced 
clerk  in  his  establishment. 

Though  the  case  is  a  clear  one,  that  inexperience  in 
any  department  of  life  is  conclusive  evidence  of  inability, 
no  thought  is  bestowed,  apparently,  by  testators  as  to  the 
ability  of  the  heir  to  take  care  of  what  they  are  confer- 
ring. Some  there  are  who  do  measure  all  these  things 
accurately  in  a  well-balanced  mind  ;  but  the  cases  are  as 
scarce  as  the  skilful  management  of  money  by  the  inex- 
perienced. Nor  is  it  always  within  the  ability  of  the 
man  of  wealth  to  bestow  his  own  money,  for  disease  or 
death  may  overtake  him,  and  leave  it  for  the  law  of  the 
land  to  distribute.  If  he  has  no  interest  in  the  persons 
who  are  to  be  his  heirs,  then  he  need  take  no  thought  to 
surround  them  with  defences  against  sharpers,  or  give 
them  knowledge  of  the  way  to  manage  what  has  required 
every  moment  of  his  thoughts,  and  a  lifetime  of  experi- 
ence to  do  well. 

Affection  prompts  the  parent  to  do  everything  for  the 
child,  for  his  education,  as  a  means  of  advancement  in 
life.  No  wish  is  left  ungratified,  no  money  denied  for 
pleasure,  no  stone  left  unturned  for  his  gratification. 
Every  want  is  supplied,  even  without  the  asking ;  every 
look  penetrated  to  discern  the  bent  of  the  unfolding 
mind  ;  every  action  balanced  to  note  progress  in  know- 
ledge, and  every  grace  scanned  to  mark  the  advance  in 


How  to  make  Money.  63 

refinement.  The  argus  eye  of  the  parent  is  ever  watch- 
ful, the  heart  ever  anxious.  Time  rolls  on,  and  the  young 
girl  passes  aWay  from  under  this  supervision  to  the  cares 
of  her  own,  and  the  boy  to  seek  what  the  parent  has 
heretofore  given  him.  Even  in  these  new  conditions 
everything  that  devoting  parents  can  confer  is  still  ex- 
tended to  the  striving  children.  They  commence  to  act 
for  themselves,  they  must  purchase  for  themselves,  they 
must  make  for  themselves,  they  must  find  means  for 
themselves,  and  they  must  finally  manage  for  themselves. 
Now  let  us  examine  for  a  moment  what  education  they 
have  received,  either  at  the  school  or  under  {.he  parental 
roof,  to  enable  them  to  enter  on  these  duties.  Has  the 
parent  or  the  teacher  ever  taught  them  the  value  of  a 
single  article  which  has  supplied  their  wants,  as  a  part 
of  their  education  ?  True,  the  child  may  have  heard  the 
cost  or  price  of  this  or  that ;  but'has  the  child  ever  been 
systematically  taught  the  business  of  life  while  under 
the  care  of  the  parent  ?  ■  Has  the  child  been  placed  in 
the  independent  condition  with  respect  to  supplying  its 
own  wants,  and  carrying  on  its  own  business,  as  it  has 
been  compelled  to  read  and  learn,  for  the  purpose  of 
using  that  learning  independent  of  the  parent  ?  Has  the 
child's  attention  ever  been  called  to  the  manipulations  of 
life,  by  the  ABC  manipulations,  in  supplying  its  own 
wants  while  under  the  parental  roof?  If  n©t,  how  can 
you  reasonably  expect  or  ask  anything  but  ignorance, 
and  consequent  failure  for  a  time,  when  they  are  called 
upon  by  the  parent  to  acl;  for  themselves  ?  Would  you 
expect  the  child  shall  be  suddenly  gifted  with  that  which 
all  experience  tells  is  the  result  of  great  experience  ? 
Would  you  expect  that  child  to  read  before  it  had  learned 
the  letters,  speak  the  language  before  it  had  uttered  a 


64  How  to  make  Money. 

sound,  or  in  like  manner  use,  handle,  protect,  invest,  and 
keep  money  before  it  had  learned  the  value  of  a  dollar  ? 
Would  you,  if  you  wished  to  teach  him  to  swim,  take 
him  to  a  precipice  and  dash  him  into  the  water,  and 
carelessly  say  to  him  :  "  Swim,  my  :hild  !  " 

No ;  such  infanticide  would  send  a  thrill  of  horror 
through  your  entire  being  ;  but  you  do  little  less  when 
you  allow  the  child  of  your  affection  to  be  launched  un- 
tutored into  the  turbulent  sea  of  life,  where  failure,  want, 
poverty,  and  misery,  are  less  welcome  than  death  itself. 
Your  kindness,  your  affection,  your  pride,  ruin  your  child 
before  he  leaves  the  parental  home.  You  first  unfit  him 
by  his  antecedents  for  business  and  for  the  affairs  of  life, 
and  then  wonder  why  he  does  not  thrive  ;  and  finally,  if 
so  lucky  he  or  you  may  be,  after  failure  overtakes  him, 
you  gather  him  again  to  yourself,  and  renurse  and  re- 
destroy  the  little  advance  he  has  made.  But  if  circum- 
stances do  not  thus  favor  him,  he  sinks  down  in  despair, 
and  the  winds  of  fortune  drift  him  to  and  fro  like  the 
withered  leaves  of  the  forest. 

This,  all  this,  is  generally  the  fault  of  the  parent.  The 
early  days  of  the  child  are  spent  with  an  uneducated, 
selfish  nurse,  and  from  her  its  first  impressions  of  cha- 
racter are  received.  Among  the  higher  walks  of  life,  and 
to  those  especially,  these  remarks  more  particularly  apply. 
The  mother  often  cannot  afford  even  to  feed  the  child 
from  her  own  flesh,  but  borrows  an  unnatural  substitute. 
The  moment  the  little  creature  can  talk  it  is  taught  to 
despise  everything  common,  that  is,  everything  that  ap- 
pertains to  the  realities  of  life  except  a  love  for  dress, 
show,  and  company.  It  is  unnecessary  to  repeat  the 
course  of  education  in  the  nurseries  of  many  of  the 
present  day.     The  absence  of  all  attempts  to  teach  chil- 


How  to  make  Money.  65 

dren  what  will  be  insisted  on  in  this  book  shall  be 
taught  them,  to  fit  them  to  become  successful  men  and 
women,  is  not  now  undertaken,  even  though  it  be  known. 

The  following  remarks  respecting  the  partial  prepara- 
tion of  children  while  under  the  parental  care  or  while 
young,  in  the  knowledge  of  the  affairs  of  life,  apply 
equally  to  all,  the  rich  and  the  poor,  the  high  and  the 
low.  The  main  difficulty  which  all  young  persons  ex- 
perience when  they  come  to  act  for  themselves  is,  that 
they  do  not  know  what  to  do.  If  a  merchant  wished  to 
buy  a  stock  of  goods  to  advantage,  how  do  you  think  he 
would  succeed  if  he  had  never  bought  an  article  in  his 
life,  nor  even  been  present  at  the  purchase  of  one  ?  No 
trouble  at  all  about  purchasing  the  stock  ;  that  would  be 
simple  and  easy.  He  would  only  have  to  inquire  out 
who  kept  this  and  that  thing,  and  the  purchasing  would 
be  readily  accomplished.  He  would  be  just  as  likely  to 
buy  his  articles  third  or  fourth-handed,  as  to  buy  them  of 
first  hands  ;  and  if  he  was  so  fortunate  as  to  buy  them  of 
first  hands,  he  would  be  as  likely  to  pay  one  price  as  an- 
other. His  first  step  in  merchandizing  would  probably 
be  his  ruin ;  and  when  once  his  capital  is  gone,  and  his 
credit  too,  he  is  worse  off  than  a  young  man  without 
friends  or  money. 

The  young  beginner,  without  experience  in  the  manner 
of  purchasing,  the  value  of  the  articles  which  he  is  com- 
pelled to  purchase,  and  the  little  business  which  he  is 
forced  to  carry  on  to  supply  his  own  personal  wants,  may 
fail  as  utterly  in  his  first  attempt,  and  probably  would,  as 
the  man  who  undertakes  merchandizing  without  know- 
ledge. And  if  such  a  beginner  had  no  parent  or  friend  to 
fall  back  upon  and  supply  the  loss  or  deficiency,  the  em- 
barrassment would  be  about  equal  in  both  instances.    But 


66  How  to  make  Money. 

if  the  child  had  been  taught  at  twelve  years  of  age  that 
he  was  a  consumer,  and  hence  might  at  that  early  age 
become  an  embryo  merchant,  and  had  been  furnished 
with  the  capital  used  by  the  parent  to  begin  to  purchase 
what  he  himself  consumed,  an  education  in  value  and  in 
the  actual  business  of  life  would  have  been  begun. 
When  that  child  had  arrived  at  the  age  of  twenty-one  he 
would  have  been  nine  years  a  practical  merchant,  and 
would  ordinarily  have  touched  the  value  of  every  article 
of  consumption  sold  in  the  land.  And  if  such  business 
had  been  conducted  with  skill  and  economy,  the  profits 
of  it  over  and  above  what  the  parent  would  have  expended 
in  the  same  thing  would  be  a  handsome  capital  for  the 
young  man  to  commence  merchandizing  upon,  or  give 
him  a  good  start  in  some  other  business. 

The  figures  resulting  from  such  a  course  would 
astonish  the  most  calculating.  The  benefits  to  the  child 
would  be  enduring ;  and  at  every  step  in  his  career,  from 
the  day  he  was  twelve  years  old  till  he  was  twenty-one, 
some  practical  and  useful  knowledge  would  be  acquired. 
Nor  would  this  at  all  interfere  with  his  general  education, 
except  to  materially  aid  him  in  procuring  knowledge. 
It  would  make  him  self-confident,  improve  his  reasoning 
powers,  and  increase  his  thought  and  calculation.  He 
would  from  necessity  be  made  to  know  the  value  of  a 
dollar,  which  is  the  first  step  towards  certainly  being  in- 
dependent of  charity.  This  word  charity  sounds  harsh 
upon  the  ear,  though  many  who  are  dependent  upon  it 
are  not  ready  to  admit  the  fact. 

The  child  is  supported  by  the  charity,  in  one  sense,  of 
the  parent,  till  he  supports  himself.  The  friend  who  eats 
your  bread  and  can  get  bread  in  no  other  way,  lives  on 
charity.     The  old  who  cannot  work,  and  have  no  means, 


How  to  make  Money.  67 

in  like  manner  are  the  subjects  of  charity.  The  I'osition 
of  being  the  recipient  of  charity  is  an  unenviable  one,  and 
it  is  more  honorable  to  work  at  any  honest  employment 
than  accept  this  boon.  If,  then,  the  young  can  place 
themselves  beyond  the  charity  of  the  parent  even,  they 
will  accomplish  a  great  and  good  work.  But  this  is 
scarce  expected,  except  when  the  parent  has  not  the 
means  to  support  and  educate  the  child. 

The  seeds  of  a  fortune,  if  sown  to  grow,  must  be  sown 
early.  There  may  be  those  who  will  find  out  later  the 
means  of  managing  for  themselves  so  as  to  accomplish 
the  object.  But  the  earlier  the  lesson  of  economy,  self- 
denial,  prudence  and  skill  in  handling  capital,  is  learned, 
the  earlier  it  can  be  put  in  practice.  The  earlier  the 
lesson  is  taught  to  the  child,  of  the  handling  and  the 
having  of  money  for  the  purpose  of  being  out  of  the 
humiliating  position  of  dependence,  the  less  fear  there  is 
that  it  will  be  sought  for  with  an  appetite  for  hoarding. 
The  child  must  be  taught  rightly,  or  the  instruction  may 
act  like  medicine  given  in  over  or  under-doses. 

There  may  be  objections  in  the  mode  laid  down  here  ; 
but  if  any  should  suggest  themselves  to  parents  they  can 
vary  them  at  their  pleasure.  What  will  be  done  here 
must  be  regarded  as  simply  suggestions,  not  rules  of 
action.  It  is  then  suggested  that,  if  the  child  is  hale  and 
hearty,  the  age  of  twelve  years  seems  to  be  early  enough 
to  commence  the  training  in  miniature  or  ABC  business. 
They,  both  male  and  female,  should  then  be  informed  by 
the  parent,  that  after  that  day  they  would  be  required  by 
their  aid,  or  by  the  aid  of  some  proper  person,  to  purchase 
every  article  of  clothing  which  they  were  to  wear,  attend 
to  its  making,  and  perform  generally  the  business  of 
their  own.     That  they  were  to  pay  for  their  subsistence 


6S  How  to  make  Money. 

to  the  parent  about  its  cost.  That  to  do  this  a  certain 
stipend  per  annum  was  to  be  allowed,  and  a  systematic 
account  kept  to  show  the  expenditure  of  every  cent 
and  the  corresponding  amounts  received. 

In  this  way  the  child  will  early  be  taught  to  figure, 
calculate,  and  trade.  He  will  also  see  the  value  of  the 
boon  of  parental  care,  and  be  made  to  appreciate  it.  Let 
the  amount  for  his  expenditure  be  ample,  and  at  the 
same  time  imperative,  and  one  or  two  domestic  failures 
will  give  him  a  foretaste  of  heavier  ones  in  after  years. 
Let  him  understand,  "too,  the  disgrace  of  failure — put 
him  in  Coventry  and  curtail  his  privileges,  and  make  him 
feel  early  that  to  go  beyond  his  depth  and  exceed  his 
right,  is  morally  wrong,  as  well  as  personally  disgraceful. 
Make  him  understand  the  moral  and  legal  obligation  of 
his  contract,  for  he  will  readily  accept  the  offer  to  have 
the  stipend  and  make  his  own  expenditures.  Such  is 
human  nature,  even  in  its  earliest  stages,  that  responsi- 
bility creates  self-respect ;  and  such  an  offer  to  a  boy  or 
girl  will  be  as  great  an  epoch  in  their  history  as  the 
day  when  they  legally  are  beyond  the  control  of  the 
parent. 

The  difficulty  in  such  an  arrangement  is  that  the  pa- 
rents will  be  the  first  to  give  out.  At  first  the  idea  may 
strike  them  favorably  ;  but  the  trouble  will  be  too  great, 
and  they  cannot  see  the  effects  of  a  different  course. 
Though  if  one  parent  will  take  the  trouble,  and  will  per- 
severe to  the  end,  and  the  result  shall  be  one  child  edu- 
cated rightly  in  his  business  habits,  the  book  will  do 
good,  and  the  instruction  is  not  in  vain. 

"  And  now,  my  young  man,  I  am  going  to  take  you  to 
purchase  the  first  pair  of  shoes  you  ever  bought ;  and  as 
we  go  along  we  will  have  a  talk  together.     You  know 


How  to  make  Money.  69 

you  hs.ve  got  your  father's  money,  which  he  has  labored 
hard  to  procure,  and  every  shilling  counts  one  with  him. 
He  has  also  entrusted  you  with  it  to  expend  for  neces- 
saries, and  as  a  trustee  of  that  money  you  must  spend  it 
only  for  such  things  as  are  purely  necessary,  and  with 
his  permission  only.  You  may  say  that  you  have  to-day 
entered,  by  your  father's  consent,  upon  your  ABC  man- 
hood. He  has  done  this  to  educate  you  in  the  way  of 
the  world.  If  you  use  the  knowledge  you  will  gain  by 
his  kindness  in  this  respect,  you  will  thank  the  day  when 
you  commenced  this  system  of  education,  and  all  I  can 
say  to  you  is,  persevere  in  it  till  your  father  ceases  to 
give  you  the  means  of  support." 

"  We  are  now  at  the  shoe-shop.  What  number  do  you 
wear  ? " 

"  I  don't  know,"  replied  the  boy. 

"  Certainly  I  did  not  suppose  you  did  ;  but  find  out,  so 
that  when  you  come  again  you  need  not  spend  a  quarter 
of  an  hour  trying  on  shoes  till  you  find  a  pair  to  fit ;  for 
by  your  ignorance  of  that  fact  now,  three  of  us,  the  shoe- 
maker, yourself,  and  myself,  lose  collectively  about  half 
an  hour  of  valuable  time — yours  for  play  and  study,  mine 
for  writing,  and  the  shoemaker,  who,  because  everybody 
is  equally  ignorant,  has  to  charge  more  for  his  shoes. 
What  kind  of  shoes  do  you  want  ? " 

"  I  do  not  know ;  such  as  mother  gets  me,  I  suppose," 
replied  the  boy.     "  Yes,  calf-skin,  thick  soled." 

Now  I  must  give  you  a  few  rules  about  purchasing, 
which  you  should  remember. 

Find  out  before  you  start  just  what  you  want.  This 
will  save  time,  and  keep  you  from  buying  what  you  do 
not  want,  or  cheap  bargains,  which  are  always  the  dearest 
in  the  end. 


yo  Hozu  to  make  Money. 

Ask  for  the  varieties  of  the  kind  of  goods  you  want,  if 
you  desire  to  selecl.     Ask  for  nothing  else. 

To  ask  to  see  that  which  you  do  not  want,  out  of  cu- 
riosity, is  taking  the  time  of  the  tradesman  by  false  pre- 
tences. It  is  taking  from  him  by  false  representations 
that  which  is  money  to  him.  If  he  voluntarily  offers  to 
show  you,  look  if  you  please. 

Ask  the  price  simply. 

If  the  price  and  article  suit  you,  take  it ;  and  if  it  does 
not  suit  you,  leave  it,  and  ask  no  abatement. 

If  the  tradesman  can  abate,  and  wishes  to  sell  at  a 
lower  rate,  he  may  himself  make  the  proposition.  But 
if  you  do  it,  you  imply  that  he  charges  more  than  he  can 
afford  to  take,  and  is  making  an  exorbitant  profit.  It  is 
jockeying  on  the  part  of  the  purchaser,  which  is  both 
undignified  and  unmanly. 

Be  prompt  in  your  decisions. 

This  is  practicable  if  you  know  what  you  want,  and  it 
saves  much  time  all  around. 

Never  ask  the  wholesale  dealer  to  sell  you  a  retail 
quantity  at  zvholesale  price. 

For  then  you  both  do  injustice  to  the  retailer,  and  you 
ask  the  wholesaler  to  give  you  the  amount  of  money 
which  is  the  proper  addition  to  the  wholesale  price, 
whether  the  business  be  done  by  one  man  or  by  another. 

If  a  tradesman  deceives  you,  go  to  him  no  more. 

There  are  more  places  than  one  where  you  can  get  the 
same  article  ;  and  if  he  deceives  you  once,  he  will  in  all 
probability  deceive  you  again. 

If  he  sell  you  a  poor  article  for  good,  inform  him  of  it. 

The  chances  are,  he  is  as  much  deceived  as  you,  as 
false  representations  make  him  criminally  liable.  He 
will  readily  correct  the  error  if  he  is  an  honest  man  ;  if 


How  to  make  Money.  71 

not,  you  cannot  make  him  honest  by  complaint  at  law, 
though  that  might  be  your  duty. 

If  you  find  you  have  deceived  yourself  in  a  purchase, 
keep  the  goods. 

The  seller  cannot  find  eyes  and  judgment  on  both  sides 
of  a  bargain ;  do  not  then  blame  him,  but  blame  yourself. 

Treat  tradesmen  with  respect  and  politeness. 

The  buyer  and  the  seller,  in  all  honest  and  necessary 
dealings,  stand  on  an  equal  platform.  They  are  each 
necessary  to  the  other,  and  are,  for  the  time,  equal  to 
each  other — the  one  holding  the  goods,  the  other  the 
money.  Be  polite  and  civil  to  them,  and  you  will  gene- 
rally provoke  the  same  civility  in  return. 

Be  discriminating  in  values. 

There  may  be  a  hundred  articles  of  the  same  kind  and 
same  price,  but  one  may  be  of  much  better  quality  and 
more  valuable  than  another ;  and  in  order  that  you  shall 
get  the  most  for  your  money,  you  must  select  the  best 
out  of  the  lot. 

With  these  very  general,  but  by  no  means  all  the 
suggestions  which  might  be  made  to  you,  we  will  now 
enter  the  shoe-store,  and  you  may  make  your  first  pur- 
chase. 

The  young  beginner  completed  his  purchase,  his  shoes 
were  good,  the  amount  of  money  paid  a  little  less  than 
the  parent  usually  gave  ;  for,  somehow,  the  merchant 
thought  he  would  not  put  on  the  extreme  price  to  such  a 
novice,  and  the  whole  transaction  was  eminently  satis- 
factory to  all  parties.  It  is  not  difficult  to  see  what 
qualities  of  the  mind  were  called  into  exercise  by  this 
simple  practical  lesson.  The  boy  would  at  once  begin  to 
examine  such  articles,  inquire  what  they  were  made  of, 
and  of  their  various  qualities,  the  kinds  of  leather  used— 


72  How  to  make  Money. 

how  it  was  made,  and  where  ;  till  following  up  these  sug- 
gestions, his  mind  would  ramify  into  every  avenue  of 
knowledge  of  such  practical  nature  and  utility.  Such 
information  would  store  his  mind  with  facts  highly  essen- 
tial to  the  vigorous  attainment  of  other  learning,  as  the 
mind  would  have  external  exercise  highly  beneficial  to  its 
energetic  action. 

It  is  but  too  apparent  that  all  this  will  consume  much 
time  of  some  one.  But  a  common  education  in  letters 
cannot  be  obtained  without  a  long  series  of  care  on  the 
part  of  the  teacher,  and  the  expenditure  of  time  on  the 
part  of  the  pupil.  At  the  present  time  this  business 
education  is  commenced  when  all  other  education  is 
finished,  and  the  pupil  begins  to  use  it  before  he  has 
learned  the  lesson.  The  result  is,  that  the  education  is 
too  expensive  in  most  cases,  involving  the  inexperienced 
in  debt  and  trouble  which  it  takes  half  a  lifetime  to  wipe 
away.  Human  action  must  be  excited  by  an  object 
in  order  to  prove  effective  ;  and  hence,  if  you  wish  the 
child  to  aid  in  this  sort  of  education,  you  must  not  only 
extend  to  him  a  motive,  but  you  must  show  him  some 
advantage  which  he  is  to  reap  from  all  this  labor  on  his 
part.  If  you  can  accomplish  that,  you  will  even  find  him 
foremost  in  his  desire  to  accomplish  something. 

You  need  not  teach  children  that  it  is  pleasant  to  have 
money,  for  as  soon  as  they  find  out  that  money  will  buy 
a  whistle,  a  top,  or  a  rocking-horse,  that  lesson  is  learned. 
Nor  will  they  be  slow  in  discovering  every  attribute  of  a 
fortune.  But  should  they  be  so  obtuse,  the  parent  or 
guardian  should  instil  into  their  minds  the  cardinal  virtue 
and  duty,  that  is,  to  labor  for  and  have  money,  in  order  that 
they  may  neither  be  a  charge  upon  the  public  nor  upon 
their  friends.     With  this  moral  and  political  duty  con- 


How  to  make  Money.  73 

stantly  held  up  before  their  minds,  they  will  see  that  the 
object  for  which  they  are  striving  is  not  mercenary  and 
mean,  but  that  it  is  the  highest  and  first  duty  of  man,  and 
is  in  every  way  commendable  and  praiseworthy. 

The  independence  should  be  sought  for  with  care  and 
with  thought,  as  being  next  best  to  knowledge.  Nor  is 
knowledge  necessarily  superior  to  one's  duties  to  his 
neighbor,  himself,  and  to  the  public  at  large.  Then,  in 
order  that  the  youth  may  be  excited  to  acquire  a  business 
knowledge  and  plant  his  first  dollar  in  security  as  the 
seed  of  an  independence  or  of  a  fortune,  he  must  be  told 
what  that  dollar  will  accomplish  towards  this  desirable 
end.  He  must  be  taught  how  a  dollar  can  be  lost  as  well 
as  earned,  and  that  it,  like  the  seed  placed  in  the  ground, 
requires  fencing  in,  to  protect  it  from  being  destroyed. 

The  incentive  to  make  money  should  be  explained ;  and 
the  same  care  and  attention  which  will  make  the  little 
business  of  the  child  profitable  will  make  the  larger  busi- 
ness of  the  man  profitable  also.  The  business  of  the 
man  is  prosecuted  for  profit  and  a  living ;  the  business 
of  the  child  can  be  made  the  same  by  proper  arrange- 
ment. The  parent  can  either  allow  a  commission  to  the 
child  on  the  amount  of  his  expenditure,  if  the  business  be 
well  done,  or  allow  him  to  make  his  profit  out  of  the  dif- 
ference between  his  income  and  expenditure.  The  child 
must  feel,  as  the  merchant  feels,  that  he  has  the  chance 
of  making  something,  or  he  will  be  discouraged  and  take 
no  interest  in  his  little  business. 

The  parent  will  have  accomplished  all  his  duty  in  one 
direction  if  he  gives  his  child  a  business  education  as 
well  as  an  ordinary  school  or  collegiate  one,  and  fits  him 
to  avail  himself  certainly  of  what  the  parent  can  do  still 
further  for  him.     The  moment  one  becomes  a  parent 


74  How  to  make  Money. 

they  have  a  money  obligation  thrown  upon  them  to  make 
a  certain  kind  of  independence  for  another.  How,  asks 
the  reader,  can  this  be  done  ?  The  answer  is  simple,  and 
the  course  is  equally  so.  What  is  the  parent's  wish  ? 
Does  he  wish  to  give  the  child  a  collegiate  education  ? 
We  will  suppose  this  first,  and  suppose,  too,  that  the 
means  are  limited,  and  the  prospect,  under  ordinary  cir- 
cumstances, is,  that  they  will  not  be  able  to  do  so.  Let 
us  see.  You  will  be  able  to  give  him  the  ordinary  edu- 
cation, probably,  to  fit  him  for  college  ;  if  not,  we  will 
show  how  that  can  be  done.  We  will  suppose  that  this 
will  cost  two  hundred  dollars,  and  his  collegiate  education 
will  cost  one  thousand  dollars.  Now  suppose  you  com- 
mence his  primary  education  at  thirteen  years  old,  and 
his  collegiate  education  at  fifteen.  Now  let  us  see  what 
is  to  be  done  to  get  the  money.  You  have  twelve  years 
to  make  the  two  hundred  dollars  in,  and  fifteen  years  to 
make  the  one  thousand  dollars  in.  How  much  have  you 
got  to  save  daily  (three  hundred  and  eighteen  working 
days),  improved  every  six  months,  to  have  the  amount? 
You  commence  the  first  year  the  child  is  born,  and  con- 
tinue the  same  each  day  of  the  twelve  years.  Look  at 
the  tables  of  earnings  for  te7i  years  ;  5  cents  per  day 
gives  $199.89  at  5  per  cent.,  $210.26  at  6  per  cent,  and 
$222.29  at  7  per  cent.  By  the  one  year  table  you  find 
that  5  cents  per  day  gives  for  two  years  (one  double) 
$15.85  at  5  per  cent,  $15.88  at  6  per  cent,  and  $15.92  at 
7  per  cent.  So  that  if  the  parent  put  aside  every  day  5 
cents,  when  the  child  was  13  years  old,  there  would  result 
$215.74  if  improved  at  5  per  cent,  $226.14  if  improved 
at  6  per  cent,  and  $238.21  if  improved  at  7  per  cent 
We  ask,  is  there  any  one  who  could  not  lay  aside  $15.90 
per  year,  or  5  cents  per  day,  to  educate  a  child  ? 


How  to  make  Money.  75 

Let  us  now  examine  as  to  the  $1,000  necessary  for  the 
collegiate  education.  The  parent  has  from  the  time  the 
child  is  born  till  he  is  say  16  years  old  to  lay  aside  this 
amount,  that  is,  1 5  years,  Look  at  the  1 5  years'  accumu- 
lation table,  and  you  find  that  15  cents  a  day,  improved 
at  5  per  cent.,  gives  $1,030.62  ;  improved  at  6  per  cent, 
gives  #1,1 16.83  ;  improved  at  7  per  cent,  gives  $1,21 1.84. 
Is  there  any  one  scarcely  in  this  country  who  cannot 
lay  aside  20  cents  a  day,  or  $63.60  per  year,  besides  sup- 
porting himself? 

Assume,  if  you  please,  that  the  parent  is  well  off,  and 
wishes  to  make  a  settlement  of  a  stated  sum  upon  the 
child  when  twenty-five  years  of  age,  for  the  purpose  of 
going  into  business,  or  settling  himself  comfortably,  or 
as  a  marriage  gift,  possibly,  to  a  young  lady.  Suppose 
it  to  be  $10,000.  How  much  would  the  parent  be 
obliged  to  lay  aside,  improved  at  seven  per  cent.,  to  ac- 
complish that  object  ?  Look  at  the  twenty -jive  year  table 
of  improved  earnings,  run  down  the  column  under  seven 
per  cent,  till  you  find  the  nearest  sum  to  it.  You  find 
$10,251,  and  find  that  fifty  cents  per  day,  accumulated  at 
seven  per  cent.,  has  done  the  business.  There  is  scarcely 
a  family  where  this  amount  is  not  frittered  away  daily, 
and  even  mora 

But  suppose  there  were  five  children,  each  requiring 
this  sum,  the  whole  amount  would  be  but  $2.50  per  day, 
for  313  working  days,  for  25  years,  or  a  gross  sum  of 
$5 1,25  5.  There  are  very  few  families  who  could  not  save 
this  sum  from  their  expenditures  without  feeling  or  miss- 
ing it.  It  amounts  to  but  $15  per  week,  or  $910  per 
annum  ;  or  $3  per  week  per  child,  or  $182  per  year  per 
child.  There  would,  however,  be  but  little  use  in  putting 
this  sum  in  the  hands  of  a  child  not  educated  as  before 


j6  How  to  make  Money. 

spoken  of,  in  the  ways  of  business,  as  in  all  probability 
it  would  be  lost  in  a  short  time,  and  the  reasons  will  be 
apparent  if  the  reader  reads  this  book  through.  If,  how 
ever,  any  doubt  would  exist  in  the  mind  of  the  parent, 
the  sum  could  be  placed  at  interest,  and  the  interest  only 
given  ;  or,  still  better,  purchase  an  annuity,  which  would 
place  the  child  beyond  want  during  life. 

How  much  money  is  uselessly  spent  on  children — 
uselessly  because  it  neither  educates,  nourishes,  feeds, 
clothes,  nor  is  advantageous  to  them  ;  but  is  generally  a 
great  disadvantage  to  them,  by  teaching  them  that  every 
whim  or  want  can  be  supplied,  and  thereby  giving  them 
a  taste  and  an  education  to  spend  rather  than  earn. 

It  is  within  bounds  to  say  that  every  child  of  fair,  well- 
to-do  parents  has  one  hundred  dollars  a  year  spent  upon 
him,  by  parents,  which  could  be  dispensed  with ;  that  is, 
in  extra  cost  of  clothing,  toys,  and  a  thousand  and  one 
things.  That  is  31  cents  per  day  on  an  average,  say  till 
he  is  11  years  old,  and  at  least  50  cents  from  then  till  he 
is  21  years  old,  an  average  say  of  41  cents  for  twenty 
years.  Now  it  will  probably  astonish  any  one  to  find 
what  sum  this  will  be,  supposing  that  it  is  spent  only  313 
working  days  of  each  year.  By  turning  to  the  twenty- 
year  table  of  earnings  we  find  that  this  sum,  improved  at 
5  per  cent,  gives  $4,324 ;  improved  at  6  per  cent,  gives 
$4,838  ;  improved  at  7  per  cent,  gives  $5,424;  improved 
at  8  per  cent,  gives  $6,096. 

The  amount  of  41  cents  is  far  inside  the  real  useless 
expenditure  in  nine  cases  out  of  every  ten.  Let  any  one 
but  calculate  the  amount  spent  by  any  one  of  his  children 
during  this  period,  and  he  will  find  that  it  approaches 
near  a  dollar,  and  often  more.  But  suppose  it  to  be  a 
dollar,  we  find  the  amount  at  21  years  to  be,  improved  at 


How  to  jnake  Money.  yj 

7  per  cent.  $13,232,  a  snug  little  capital  to  commence  life 
with,  or  purchase  an  annuity  to  make  him  independent  of 
want. 

Over  is  a  table  which  shows  what  an  expenditure  of 
$10  made  from  the  age  of  one  year  to  25  years  will  cost, 
or  will  produce  if  compounded  at  7  per  cent,  at  30,  40,  50, 
60,  and  70  years.  That  is,  if  the  same  amount  in  money 
had  been  put  at  interest,  how  much  it  would  amount  to 
at  those  periods. 

This  table  explains  itself.  It  will  be  seen  by  that,  that 
an  expenditure  of  $10  at  1  year  of  age  if  invested  at  7 
per  cent,  would  be  $76.12  at  30  years  of  age,  $149.74 
at  40,  $294.57  at  50,  $579.46  at  60,  $1,139.89  at  70, 
$2,242.24  at  80  years  of  age,  and  so  on.  And  if  repeated 
every  year  to  the  end  of  twenty-five  years,  the  result 
would  be  the  gross  sums  of  each  line  added  up  for  the 
various  ages,  30,  40,  50,  60,  70,  and  80.  Thus  it  will  be 
seen  what  ample  provision  can  be  made  for  a  child  by  a 
little  self-denial  and  a  judicious  investment  of  a  very 
trifling  sum  each  year — a  sum  that  would  never  be 
missed  from  the  household  expenditures. 

In  like  manner,  by  reference  to  the  tables  of  earnings 
in  the  back  part  of  the  book,  say  for  twenty-five  years, 
either  the  child  or  the  parent  can  see  that  the  saving  of 
a  cent  daily  will  amount,  at  7  per  cent.,  to  $205  when  he 
is  twenty-five  years  old  ;  of  5  cents  per  day,  to  $1,025  ; 
of  10  cents  a  day,  to  $2,050  ;  of  25  cents  a  day,  to 
$5,125  ;  of  50  cents,  to  $10,250,  and  so  on.  Is  it  saying 
too  much  to  assert  that  an  independence  for  a  child  is 
within  the  reach  and  power  of  almost  any  one  ?  But, 
says  the  reader,  "  I  may  be  able  to  get  the  money,  but 
how  can  I  get  the  increase  ? "  We  say  read  on ;  you 
will  find  out  that  in  time  as  you  progress. 

1 


78 


How  to  viake  Money. 


Table 

Showing  an  expenditure  of  $10  at  any  age  from  i  to  25  years,  and 
the  amount  such  would  be  if  improved  at  compound  interest  at 
7  per  cent,  at  30,  40,  50,  60,  70,  and  80  years  of  such  person's 
age. 


°A 

Ej 

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t 

& 

O  B 

9> 

B 

(LI 

& 

w  a. 

>> 

>~> 

>• 

>», 

!>i 

5  " 

5  w 

O 

* 

0 
10 

*  S 

0 

eg 

S| 

< 

< 

< 

< 

< 

< 

I 

$76  12 

$H9  74 

$294  57 

$579  46 

$i,i39  89 

$2,242  24 

2 

71  14 

139  95 

275  30 

541  56 

1,065  32 

2,095  65 

3 

66  49 

130  79 

257  29 

506  13 

995  63 

i5958  55 

4 

62  14 

122  24 

240  45 

473  02 

930  49 

1,830  32 

5 

58  07 

114  24 

224  73 

442  07 

869  62 

1,710  67 

6 

54  27 

106  77 

210  02 

4i3  15 

812  72 

1,598  76 

7 

50  72 

99  78 

196  28 

386  12 

759  56 

i,494  17 

8 

47  4i 

93  25 

183  44 

360  86 

709  87 

1,396  42 

9 

44  30 

87  15 

I71  44 

337   25 

663  43 

1,305  06 

10 

41  41 

81  45 

160  23 

315  19 

620  03 

1,219  69 

11 

38  7o 

76  12 

149  74 

294  59 

579  46 

i,i39  89 

12 

36  17 

71  14 

139  95 

275  3o 

54i  56 

1,065  32 

13 

33   80 

66  49 

130  79 

257  28 

506  13 

995  63 

14 

3i  59 

62  14 

122  24 

240  45 

473  02 

930  49 

15 

29  52 

58  07 

114  24 

224  73 

442  07 

869  62 

16 

27  59 

54  27 

106  77 

210  02 

4i3  15 

812  73 

17 

25  79 

50  72 

99  78 

196  28 

386  21 

759  56 

18 

24  10 

47  40' 

93  25 

183  44  • 

360  86 

709  87 

19 

22  52 

44  30 

87  15 

171  44 

337   25 

663  43 

20 

21  05 

41  40 

81  45 

160  22 

315  19 

620  03 

21 

19  67 

38  70 

76  12 

149  74 

294  57 

579  46 

22 

18  38 

36  17 

71  14 

139  95 

275  3o 

54i  56 

23 

17  18 

33   80 

66  49 

130  79 

257  29 

5b6  13 

24 

16  05 

3i  59- 

62  14 

122  24 

240  46 

473  02 

25 

15  00 

29  52 

58  07 

114  24 

224  73 

442  07 

How  to  make  Money.  79 

Now,  young  boy  or  girl,  there  is  a  word  to  be  said  to 
you.  Clothing  first  costs  money,  and  it  costs  money 
also  to  replace  it.  If  you  had  a  $10  bill  would  you  sit 
down  and  rub  it  out  on  the  pavement  till  you  had  no- 
thing of  it  left  ?  Would  you  consider  any  one  sane 
whom  you  would  see  doing  such  a  thing  ?  What  would 
you  think,  then,  of  one  who  would  thus  use  a  $100  or 
$200  bill  ?  It  is  easy  to  tell  what  you  would  say  if  you 
saw  any  one  doing  such  a  thing,  that  they  were  out  of 
their  mind  or  were  wanting, in  intellect.  If  they  had  a 
fortune  and  could  not  find  objects  of  charity  to  bestow 
it  upon,  such  rubbing  out  of  value  may  be  a  justifiable 
amusement.  But  if  they  had  not,  it  is  a  moral  and 
political  wrong  ;  and  probably  the  public  charity  or  that 
of  friends  would  have  to  replace  the  loss  or  pay  the  bill. 
They  might  do  the  same,  in  result,  with  dress,  and  your 
foolish  notions  might  regard  them  as  stylish.  The 
reader  is  left  to  finish  up  the  balance, of  the  argument. 

The  child,  however,  should  regard  his  apparel  as  so 
many  bank  bills,  and  use  it  accordingly.  If  the  child 
rips,  tears,  uselessly  wears  out,  or  destroys  his  clothing,  he 
does  no  better  or  worse  than  he  who  sits  upon  the  side- 
walk and  rubs  out  a  bank  bill,  and  has  nothing  to  show 
for  it  but  his  folly.  Then,  to  make  money,  be  careful  of 
what  you  have — use  good  clothing  for  the  best  purposes, 
and  old  for  uses  where  the  new  would  be  destroyed  or 
uselessly  defaced.  Think  of  the  bank  bills  on  your  back, 
and  think  how  long  you  can  make  them  last  and  look 
fresh  and  appropriately  neat.  It  is  but  a  common  event 
to  damage  your  dress  ten  dollars  in  a  day ;  this,  in 
fifty  years,  would  produce  about  two  hundred  dol- 
lars— quite  a  heavy  loss  ;  and,  if  saved,  an  equally  large 
gain. 

4 


80  How  to  make  Money. 

The  same  care  and  thought  should  be  had  about  all 
things  which  are  useful  arid  cost  money ;  and  he  will  pro- 
bably have  more  of  this  world's  goods  and  be  quickest 
independent  of  labor  who  attends  most  closely  to  such 
suggestions. 

No  expenditure  should  be  made  by  parent  or  child,  if 
they  have  not  yet  attained  an  independence,  without  first 
considering  the  cost,  as  referred  to  in  that  scale.  Not 
what  it  costs  to-day,  but  what  it  costs  on  the  day  fixed 
for  the  independence.  If  the  same  amount  of  thought, 
energy,  time,  toil,  and  sacrifice,  be  made  in  properly 
spending,  investing,  and  generally  caring  for  money  after 
it  is  got,  as  there  is  in  getting  it,  there  would  be  no  dan- 
ger as  to  the  result.  None  would  be  without  an  inde- 
pendence, few  without  a  fortune,  and  none  in  distress, 
poverty,  or  want,  who  could  gain  employment. 


How  to  make  Moiiey.  Si 


CHAPTER  VI. 

HOW   TO    MAKE    MONEY. 

Means  of  money-making.  —  Diversity. — Selection. — Stand  by. — ■ 
Chance  and  choice. — Different  aims. — Relative  wants. — Mark 
and  abide. — Most  accomplished. — Commerce  a  failure. — Not  so 
always. — Chances  in  Boston. — Fail  as  a  class. — A  strong  bank. 
— One  per  cent,  in  Philadelphia. — Two  per  cent,  in  New  York. 
— Bankrupt  acl;. — Chances  in  Cincinnati. — Chances  in  New 
York,  Boston,  and  Philadelphia. — Nearly  all  fail. — Shrink  -with 
terror. — Mercantile  business  same  as  banking  well  done. — 
Causes  of  failure  not  explained. — Will  be. — Would  pay  best. — 
Business  example. — Kid-glove  merchant. — Failure. — Ignorance 
alike. — Course. — End. — It  must  make. — Merchants  and  banks. 
— Fault  somewhere. — Success  and  failure  hand  in  hand. — Em- 
ployer and  employed. — When  most  valuable. — Manners  make 
money. — How. — Losses  by  same. — Example. — Others. — Little 
element.  —  Great  results.  —  Bad  manners  expensive.— Metal 
merchant. — I  ncivility  and  ignorance. — Loss  $  1 96,40 1 . — Expen- 
sive amusement. — Great  principle. — Lose  or  gain. — Fire. — Loss 
$30,000. — General  principles. — All  make  money. — Danger  just 
here. — "  Every  one  to  his  trade." — Beware. — Look  out. — The 
made  dollar. — Stop  and  read. — Where  the  trouble  lies. 

The  means  of  making  money  are  as  various  as  the  em- 
ployments into  which  individuals  enter.  There  is  no 
occupation  which  yields  more  than  the  sum  required  for 
support,  that  does  not  afford  an  opportunity  for  gain. 
There  is  a  choice  of  such  employments ;  some  producing 
more  money  than  others  for  the  same  time  and  the  same 
labor.  It  is  well  to  look  to  that  difference  in  the  selection 
to  be  made.  But  when  the  occupation  is  once  entered 
upon  never  leave  it  while  there  is  a  reasonable  demand  for 
cither  the  articles  dealt  in  or  the  kind  of  labor  bestowed. 
This  cardinal  in  money-making  of  course  only  applies  to 


?>2  How  to  make  Money. 

those  who  are  thus  engaged,  and  not  to  the  one  who  has 
made  an  independence,  and  can  afford  to  make  the  sacrifice 
of  a  change ;  for  a  change  from  one  business  to  another 
is  expensive,  involving  generally  a  loss  of  the  capital,  of 
skill  and  knowledge  acquired,  and  time  both  in  •  making 
the  change  and  in  acquiring  skill  in  the  new  business. 

The  diversity  of  business  makes  diversity  of  employ- 
ments ;  and  as  a  general  thing,  those  who  engage  in  them 
have  no  intelligent  choice  in  the  matter.  They  are 
either  selected  by  the  parent,  or  by  the  youth  who  has 
not  the  remotest  idea  of  the  detail  or  of  the  profitable- 
ness of  what  he  is  about  to  engage  in.  What  usually 
attracts  both,  however,  is  the  fact  of  some  one  having 
done  well  or  made  a  fortune  in  that  kind  of  business. 
Some  are  driven  from  necessity  to  take  whatever  offers 
in  the  way  of  employment,  relying  upon  chance  for  some- 
thing better  or  for  advancement.  Whatever  may  be  the 
kind  of  employment  which  fate  or  choice  has  given  one, 
there  is  about  as  much  chance  to  make  an  independence 
by  one  as  in  the  other.  That  is,  taking  into  account  the 
gains  and  necessary  expenditures  attached  to  each,  the 
result  relatively  is  about  the  same,  as  will  be  seen  here- 
after. 

What  is  a  fortune  for  a  laboring  man,  accustomed 
to  the  society  of  his  peers,  and  only  spending  what 
that  grade  of  life  requires,  does  not  compel  as  much 
money  to  fill  his  necessities,  or  even  his  desires,  as  the 
merchant  of  liberal  education,  of  extended  acquaintance 
among  the  refined  and  educated,  demanding  expenditures 
commensurate  with  such  a  walk  in  life.  The  two  indi- 
viduals are  on  entirely  distinct  bases  of  necessary  wants, 
live  in  two  distinct  worlds,  and  are  laboring  in  different 
extended  spheres. '   The  same  is  true  of  every  grade  or 


How  to  make  Money.  83 

walk  in  life  ;  nor  is  there  an  exception  from  the  scullion 
to  the  king.  This  is  the  machinery  of  society ;  and, 
right  or  wrong,  so  we  find  it,  and  so  we  treat  it. 

The  fortune  is  only  to  be  measured  by  that  condition 
where  the  possessor  is  satisfied  with  the  supply  of  a 
given  number  and  description  of  wants.  Should  the  in- 
dividual be  content  with  what  the  interest  of  five  thou- 
sand dollars  would  command,  then  this  sum  is  his  inde- 
pendence and  his  fortune  also.  But  if  his  independence 
from  charity  was  just  this  sum,  and  he  was  unhappy 
because  he  had  not  the  means  of  gratifying  other  and 
more  expensive  desires,  he  might  keep  out  of  the  poor- 
house,  or  swing  clear  of  the  charity  of  friends,  but  he 
would  not  possess  a  fortune.  The  independence  may  be 
measurably  fixed  in  amount,  but  the  fortune  is  the  child 
of  the  rich  man's  imagination.  It  may  be  rated  much, 
or  comparatively  small,  just  in  proportion  to  his  satis- 
faction. 

Each  grade  of  business  has  generally  its  relative  por- 
tion of  income  and  relative  proportion  of  expenditures  ; 
not  altogether  from  the  necessities  attaching  to  the  busi- 
ness itself,  but  from  the  general  supposed  necessities 
attaching  to  the  position*  and  wants  of  the  persons  con- 
dueling  it.  Generally,  then,  what  is  a  fortune  in  one 
business,  is  a  small  fraction  of  one  in  another.  The 
question,  then,  is  with  every  individual  to  decide  what 
rank  in  life  he  will  aim  at,  in  order  to  settle  the  amount 
of  the  fortune  to  be  obtained  in  business.  Few  will  be 
able  to  make  a  mark,  and  abide  by  it ;  but  individual 
imperfections  do  not  affect  a  sound  principle. 

Some  businesses  are  incapable,  from  the  very  nature 
of  them,  of  great  extension.  They  are  limited,  and  the 
money  to  be  made  from  them  is  likewise  limited.     The 


84  How  to  make  Moiiey. 

first  guarantee  of  success  is  to  be  satisfied  with  the  busi- 
ness you  are  engaged  in.  For  it  can  be  conclusively 
shown  that  one  business  is  just  about  as  good  as  an- 
other in  its  results  in  the  long  run.  The  next  qualifica- 
tion for  money  making  in  such  business  is  knowledge 
respecting  it  in  every  possible  relation,  and  skill  and  tacl  in 
its  application  to  accomplish  most  with  the  least  expendi- 
ture of  time  and  capital. 

All  works  published  upon  business  and  money-mak- 
ing seem  to  hold  up  to  the  applicants  for  fortunes  the 
inducements  of  commerce  as  the  great  field  for  wealth. 
But,  if  the  statistics  furnished  are  to  be  relied  upon, 
merchandizing  is  the  last  occupation  in  which  to  look 
for  a  fortune,  provided  merchandizing  is  carried  on  in 
the  usual  way.  But  a  failure  of  ten  thousand  locomo- 
tives to  perform  well,  or  their  giving  out  from  a  defect 
in  some  of  their  parts,  would  not  condemn  the  present 
beautiful  specimens  of  such  work.  The  failure  of  one 
man  in  merchandizing  should  not  necessarily  indicate 
the  failure  of  auother.  We  take  the  liberty  of  making 
an  extract  of  some  statistics  found  in  that  very  excellent 
work,  "  Freedley's  Practical  Treatise  on  Business,"  re- 
specting mercantile  success,  headed : 


"CHANCES    OF    SUCCESS    IN    MERCANTILE   LIFE    IN  ^BOSTON. 

"  On  the  evening  of  the  28th  of  February,  1840,  Gene- 
ral Henry  A.  S.  Dearborn  delivered  an  address  at  an 
agricultural  meeting  of  the  members  of  the  Legislature, 
which  embraced  a  statement  that  startled  many,  and  at- 
tracted the  attention  of  business  men  in  all  parts  of  the 
country.     Freeman  Hunt,  Esq.,  of  the  Merchants'  Maga- 


How  to  make  Money.  85 

zine,  wrote  to  General  Dearborn  for  a  copy  of  his 
remarks,  made  in  connection  with  that  statement,  which 
he  placed  at  his  disposal.  General  Dearborn  was  Col- 
lector of  the  Port  of  Boston  for  nearly  twenty  years,  and 
was  therefore  enabled  to  notice  the  vicissitudes  in  trade, 
and  his  statements  are  confirmed  by  the  remarks  of  a 
Boston  merchant,  which  are  here  appended.  He  is 
speaking  of  the  superior  advantages  of  a  residence  in  the 
country,  and  observes  : — 

"  '  In  England,  the  pleasures,  and  privileges,  and  bless- 
ings of  the  country  seem  properly  understood  and  valu- 
ed. No  man  there  considers  himself  a  freeman  unless 
he  has  a  right  in  the  soil.  Merchants,  bankers,  citizens, 
men  of  every  description,  whose  condition  of  life  allows 
them  to  aspire  after  anything  better,  are  looking  forward 
always  to  retirement  in  the  country — to  the  possession 
of  a  garden  or  a  farm,  and  to  the  full  enjoyment  of  rural 
pleasures.  The  taste  of  the  nobility  of  England  is  emi- 
nently in  that  direction.  There  are  none  of  them  who, 
with  all  the  means  which  the  most  enormous  wealth  can 
afford,  even  think  of  spending  the  year  in  London,  or  of 
remaining  in  the  confinement,  noise,  and  confusion  of 
the  city,  a  day  longer  than  they  are  compelled  to  do  by 
their  parliamentary  or  other  public  duties. 

" '  There  is,  in  this  respect,  a  marked  difference  be- 
tween England  and  France.  Formerly,  the  nobility  of 
France  were  scattered  broadcast  over  the  territory,  and 
had  their  villas,  their  castles,  and  chateaux,  in  all  the  pro- 
vinces of  the  kingdom.  But  the  monarchs,  anxious  to 
increase  the  splendor  of  their  courts,  and  to  concentrate 
around  them  all  that  was  imposing  and  beautiful  in 
fashbn,  luxury,  and  wealth,  collected  the  aristocracy  in 


86  How  to  make  Money. 

the  capital.  The  natural  consequence  was  that  the 
country  was  badly  tilled,  and  agriculture  made  no  ad- 
vancement, while  England  was  making  rapid  and  extra- 
ordinary progress  in  the  useful  and  beautiful  arts  of 
agriculture  and  horticulture,  and  now,  in  her  cultivation, 
presents  an  example  of  all  that  is  interesting  in  embel- 
lishment and  important  in  production.  We  are  the 
descendants  of  England  ;  yet  on  these  subjects  we  have 
reversed  the  order  of  taste  and  sentiment  which  there 
prevails. 

"  '  Happy  would  it  be  for  us  if  our  gentlemen  of  wealth 
and  intelligence  would  copy  the  bright  example  of  the 
affluent  and  exalted  men  of  England.  If,  after  having 
accumulated  immense  fortunes  in  cities,  they  would  carry 
their  riches  and  science  into  the  country,  and  seek  to 
reclaim,  to  improve,  and  render  it  more  productive  and 
beautiful.     *     *     *     * 

"  '  It  is  an  inexplicable  fact  that  even  men  who  have 
grown  rich  in  any  manner  in  the  country  should  rush 
into  cities  to  spend  their  wealth  ;  and  it  is  equally  as 
remarkable,  that  those  who  have  accumulated  fortunes 
in  the  city  shudder  at  the  idea  of  going  into  the  country, 
where  wealth  might  be  safely  appropriated  to  purposes 
of  the  highest  utility,  pleasure,  and  refinement. 

" '  There  prevails,  in  this,  rather  too  much  ignorance, 
false  sentiment,  and  unworthy  prejudice.  The  city  must, 
of  course,  be  regarded  as  the  proper  seat  of  active  busi- 
ness in  all  the  branches  of  commerce  and  navigation. 
But  when  a  large  portion  of  life  has  been  spent  in  these 
harassing  pursuits,  and  men  have  acquired  the  means  of 
competence  and  independence  in  the  country,  why  they 
should  not  seek  to  enjoy  the  refreshing  exercise,  the 
delightful  recreations,  and  the  privileged  hours  of  retire- 


How  to  make  Money.  8* 

ment  and  reflection  which  a  rural  residence  affords,  was 
a  mystery  which  it  was  impossible  to  solve. 

"  '  It  was  not  merely  the  ungovernable  influence  of  a 
city  life  upon  health  that  was  most  deeply  to  be  regret- 
ted. Many  an  uncorrupted  young  man  from  the  country, 
impelled  by  a  reckless  passion  for  gain,  has  there  early 
found  the  grave  of  his  virtues.  But  too  many  instances 
might  be  pointed  out,  in  which  the  acquisition  of  pro- 
perty has  proved  as  great  a  curse  as  could  have  befallen 
them.  The  chances  of  success  in  trade  are  likewise 
much  less  numerous,  and  are  more  uncertain  than  men 
generally  believe,  or  are  willing  to  allow.  After  an  ex- 
tensive acquaintance  with  business  men,  and  having  long 
been  an  attentive  observer  of  the  course  of  events  in  the 
mercantile  community,  I  am  satisfied  that,  among  one 

HUNDRED  MERCHANTS  AND  TRADERS,  NOT  MORE  THAN 
THREE,  IN  THIS    CITY,  EVER   ACQUIRE   INDEPENDENCE.      It 

was  with  great  distrust  that  I  came  to  this  conclusion  ; 
but,  after  consulting  with  an  experienced  merchant,  he  fully 
admitted  its  truth.  Infinitely  better,  therefore,  would  it 
be  for  a  vast  portion  of  the  young  men  who  leave  the 
country  for  the  city,  if  they  could  be  satisfied  with  a 
farmer's  life.  How  preferable  would  it  have  been  for 
those  who  have  sought  wealth  and  distinction  in  cities, 
if  they  had  been  satisfied  with  the  comforts,  innocent 
amusements,  and  soothing  quietude  of  the  country  ;  and, 
instead  of  the  sad  tale  of  their  disasters,  which  must  go 
back  to  the  parental  fireside,  the  future  traveller,  as  he 
passed  the  humble  churchyard  in  which  they  had  been 
laid  at  rest  with  their  laborious  ancestors,  might  truth- 
fully repeat  these  emphatic  words  of  England's  gift- 
ed bard  : — 

4* 


88  How  to  make  Money. 

"  Some  village  Hampden  that,  with  dauntless  breast, 
The  little  tyrant  of  his  fields  withstood ; 
Some  mute,  inglorious  Milton  here  may  rest ; 
Some  Cromwell,  guiltless  of  his  country's  blood.  "  ' 

"  The  following  confirmatory  remarks  of  an  intelligent 
gentleman  from  Boston  appeared  in  the  Farmers' 
Library : — 

"  'The  statement  made  by  General  Dearborn  appeared 
to  me  so  startling,  so  appalling,  that  I  was  induced  to 
examine  it  with  much  care,  and,  I  regret  to  say,  I  found  it 
true.  I  then  called  upon  a  friend,  a  great  antiquarian,  a 
gentleman  always  referred  to  in  all  matters  relating  to  the 
city  of  Boston,  and  he  told  me  that,  in  the  year  1800,  he 
took  a  memorandum  *of  every  person  on  Long  Wharf, 
and  that,  in  1840 — which  is  as  long  as  a  merchant  con- 
tinues in  business — only  five  in  one  hundred  remained. 
They  had  all,  in  that  time,  failed,  or  died  destitute 
of  property.  I  then  went  to  a  very  intelligent  director 
of  the  Union  Bank — a  very  strong  bank.  He  told  me 
that  the  bank  commenced  business  in  1 798  ;  that  there 
was  then  but  one  other  bank  in  Boston,  the  Massachusetts 
Bank,  and  that  the  bank  was  so  overrun  with  business 
that  the  clerks  and  officers  were  obliged  to  work  until 
twelve  o'clock  at  night,  and  all  Sundays  ;  that  they  had 
occasion  to  look  back,  a  year  or  two  ago,  and  they  found 
that,  of  the  one  thousand  accounts  which  were  opened  with 
them  in  starting,  only  six  remained  ;  they  had,  in  the 
forty  years,  either  failed  or  died  destitute  of  property. 
Houses,  whose  paper  had  passed  without  a  question,  had 
all  gone  down  in  that  time.  Bankruptcy,  said  he,  is  like 
death,  and  almost  as  certain ;  they  fall  singly  and  alone. 


How  to  make  Money.  89 

and  are  thus  forgotten  ;  but  there  is  no  escape  from  it, 
and  he  is  a  fortunate  man  who  fails  young. 

"  'Another  friend  told  me  that  he  had  occasion  to  look 
through  the  probate  office  a  few  years  since,  and  he  was 
surprised  to  find  that  over  90  per  cent,  of  all  the  estates 
settled  there  were  insolvent.  And,  within  a  few  days,  I 
have  gone  back  to  the  incorporation  of  our  banks  in 
Boston.  I  have  a  list  of  the  directors,  since  they  started. 
This  is,  however,  a  very  unfair  way  of  testing  the  rule,  for 
bank  directors  are  the  most  substantial  men  in  the  com- 
munity. In  the  old  bank  over  one-third  had  failed  in 
forty  years,  and  in  the  new  bank  a  much  larger  propor- 
tion. 

"'lain  sorry  to  present  to  you  so  gloomy  a  picture,  and 
I  trust  you  will  instil  into  your  sons,  as  General  Dearborn 
recommends,  a  love  of  agriculture  ;  for,  in  mercantile  pur- 
suits, they  will  fail  to  a  dead  certainty/ 

"CHANCES    OF    SUCCESS   IN    BOSTON,    PHILADELPHIA,    AND 
NEW    YORK. 

"  Nahum  Capen,  Esq.,  Editor  of  the  Massachusetts  State 
Record,  makes  some  interesting  statements  on  the  subject 
in  the  following  letter  which  he  wrote  to  the  Hon.  Tru- 
man Clark,  to  be  presented  at  one  of  the  legislative  agri- 
cultural meetings  held  weekly  during  the  session  of 
the  Legislature  at  the  Senate  Chamber. 

"'Boston,  March  2,  1847. 
" '  Hon.  Truman  Clark  : 

"  ■  My  dear  Sir — In  accordance  with  your  wishes,  I 
send  herewith   such  statistics  in  regard  to  failures  in 


go  Hozv  to  make  Money. 

Massachusetts,  as  I  received  last  year,  in  reply  to  a  cir 
cular  I  sent  to  every  town  in  the  commonwealth,  for  the 
purpose  of  collecting  information  for  the  Massachusetts 
State  Record.  As  these  returns  were  imperfect,  I  defer- 
red any  publication  of  them  till  another  year,  when 
probably  I  should  have  the  means  of  doing  the  subject 
ample  justice. 

"  '  Number  of  towns  represented,  144  ;  estimated  popu- 
lation of  ditto,  242,186;  number  of  farming  towns,  79; 
manufacturing  and  farming,  56  ;  number  engaged  mostly 
in  navigation,  9  ;  number  of  failures  reported,  357. 

" ' Business  of  Bankrupts. — Farmers,  59 ;  manufacturers 
and  mechanics,  182,  including  70  boot  and  shoe  manufac- 
turers ;  laborers,  9 ;  innholders,  1  ;  speculators  (farmers), 
4 ;  ministers,  1  ;  traders,  63  ;  business  not  stated,  48.   *  * 

" '  It  does  not  appear,  from  my  returns,  how  many 
farmers  failed  in  consequence  of  becoming  speculators, 
intemperate,  or  indolent  men.  It  seems  to  me  that  an 
industrious,  temperate,  and  frugal  farmer  can  hardly  do 
otherwise  than  succeed.  Small  gains,  gradually  accumu- 
lated, are  safer  and  surer  than  large  profits  and  sudden 
fortunes.  Their  influence  is  favorable  to  the  growth  of 
good  morals,  and  they  do  not  endanger  the  habits  of 
prudence. 

"  '  If  Governor  Carver  had  invested  £70  on  his  arrival 
in  the  country  at  compound  interest,  the  accumulated 
sum  at  this  time  would  be  sufficient  to  buy  the  whole 
State  of  Massachusetts,  and  it  would  exceed  the  banking 
capital  of  the  United  States. 

" f  If  a  young  man  at  twenty-one  were  to  lease  a  farm 
and  make  an  annual  profit  of  one  hundred  dollars,  and 
invest  both  principal  and  interest  from  year  to  year,  for 
twenty-five  years,  his  fund  would  amount  to  $5,000,     If 


How  to  make  Money.  91 

he  were  to  own  the  farm,  he  might  have  a  fund  at  interest 
of  $10,000  in  twenty-five  years. 

"  'A  trader,  however,  may  begin  with  a  capital  of  $  10,000 
on  the  credit  system,  as  now  managed,  and  in  twenty-five 
years  there  are  ninety-seven  chances  to  every  one  hun- 
dred, that  he  will  be  $10,000  in  debt  beyond  his  means 
to  pay. 

" '  This  percentage  of  success  and  failure  has  been  al- 
luded to,  at  your  discussions,  as  being  true  of  Boston.  I 
believe  it  to  be  nearly  correct.  I  have  been  advised  by 
very  intelligent  gentlemen,  who  have  the  means  of  know- 
ing, that  not  more  than  one  per  cent,  of  the  best  class  of 
merchants  succeed  without  failing  in  Philadelphia,  and 
that  not  more  than  two  per  cent,  of  the  merchants  of  New 
York  ultimately  retire  on  an  independence,  after  having 
submitted  to  the  ustial  ordeal  of  failure.  These  calcula- 
tions are  based,  it  must  be  observed,  upon  periods  of 
twenty-five  and  thirty  years. 

" '  The  lot  of  the  merchant  is  one  of  great  labor  and 
anxiety,  compared  to  that  of  the  farmer.  He  labors 
harder,  his  life  is  shorter,  and  he  is  less  sure  of  a  com- 
petency in  old  age.' 

"A  contributor  to  the  Merchants  Magazine  states  that 
it  is  said  '  that  but  one  eminent  merchant,  and  his  death 
is  still  recent,  has  ever  continued  in  active  business  in 
the  city  of  New  York,  to  the  close  of  a  long  life,  without 
undergoing  bankruptcy  or  a  suspension  of  payments  in 
some  of  the  various  crises  of  the  country.'  It  is  also 
asserted  by  reliable  authority,  from  records  kept  during 
periods  of  twenty  to  forty  years,  that,  of  every  hundred 
persons  who  commence  business  in  Boston,  ninety-five 
at  least  die  poor ;  that  of  the  same  number  in  New  York 


92  How  to  make  Money. 

not  two  ultimately  acquire  wealth,  after  passing  through 
the  intermediate  process  of  bankruptcy ;  while  in  Phila- 
delphia the  proportion  is  still  smaller. 

"By  the  statistics   of  bankruptcy  under  the  uniform 
bankrupt  law  in  1841, 

"  The  number  of  applicants  for  relief  under 

that  law  were 33>739 

"  The  number  of  creditors  returned     .         1,049,603 
"The  amount  of  debts  stated  .         440,934,615 

"  The  valuation  of  property  surrendered  43,697,307 
"If  this  valuation  were  correct,  nearly  ten  cents  would 
have  been  paid  on  every  dollar  due  ;  but  what  was  the 
fact? 

"  In  the  Southern  district  of  New  York,  one  cent  was 
paid,  on  an  average,  for  each  dollar  due ;  in  the  Northern 
district,  thirteen  and  two-thirds,  being  by  far  the  largest 
dividend.  In  Connecticut,  the  average  dividend  was 
somewhat  over  half  a  cent  on  each  dollar. 
"  '  In  Mississippi,  it  was 
"  'Maine 

"  '  Michigan  and  Iowa 
"  '  New  Jersey 
"  '  Tennessee 
"  ' Maryland. 
"  '  Kentucky 
"  'Illinois      . 
"  '  Pennsylvania,  East  Virginia,    South   Alabama, 
Washington,  nothing. 

"Palmers  Almanac,  1849/ 
"  'After  making  every  possible  allowance  for  the  enhance- 
ment of  this  enormous  amount  of  debt  by  inflation  of 
values,  speculative  prices,  etc.,  the  proportion  of  $400,- 
000,000,  lost  by  those   of  the    1,049,603   creditors  who 


6  cents  to  $ 

>  1,000 

i  cent   " 

100 

i      "      " 

100 

4  cents  to 

100 

4i    "      " 

100 

1  dollar  to 

100 

8  dollars  to 

1,000 

1  dollar  to 

1,500 

How  to  make  Money.  93 

were  engaged  in  proper  and  legitimate  business,  must 
still  have  been  immense,  and  may  justly  be  charged 
against  the  profits  of  our  regular  commerce.  These 
things  being  so,  our  system  of  trade  should  be  character- 
ized, not  as  a  system  of  exchange,  but  as  a  system  of 
bankruptcy,  tending  to  the  ruin  of  all  who  engage  in  it ; 
the  exceptions  being  only  numerous  enough  to  prove  the 
rule. 

"CHANCES    IN    CINCINNATI. 

"C.  Cist,  of  Cist's  Cincinnati  Advertiser,  the  statist  of 
that  city,  published,  some  two  or  three  years  ago,  the 
following  result  of  his  investigations  : — 

" '  The  avidity  with  which  young  men  crowd  those 
avenues  in  life  in  which  there  is  a  chance  of  making 
money  with  rapidity,  or  of  acquiring  political  or  social 
distinction  and  eminence,  is  the  more  remarkable,  when 
it  is  apparent,  on  the  surface  of  the  subject,  that  they 
are  venturing  in  a  lottery  in  which  there  are  many  blanks 
to  one  prize.  A  few  acquire  the  object  of  their  pursuit ; 
the  mass  sink  into  obscurity  and  insignificance. 

" '  Take,  for  example,  mercantile  pursuits.  It  is  the 
experience  and  observation  of  intelligent  persons  in  the 
East,  that  there  is  hardly  a  firm  in  existence  now  which 
did  business  twenty  years  ago  ;  and  that  nine  out  of  ten 
in  mercantile  life,  in  the  long  run,  amidst  the  fluctuations 
of  trade,  are  broken. 

" '  Let  me,  however,  bring  the  subject  nearer  home.  I 
had  prepared  a  list  of  the  principal  active  business  men 
who  were  in  trade  twenty  years  ago,  in  Cincinnati,  of 
which  a  brief  extract  is  all  that  I  have  space  for  in  these 


94  How  to  make  Money. 

columns.     In  place  of  giving  names,  I  shall  distinguish 
them  by  numbers. 

"'No.  i.  Broke  ;  resumed  business  ;  has  since  left  Cin- 
cinnati. 

"     2.  Broke  ;  resides  in  Indiana. 

"     3.  Broke  ;  and  now  engaged  in  collecting  accounts. 

"     4.  Died. 

"     5.  Now  captain  of  a  steamboat. 

"  6.  Left  merchandizing  to  put  up  pork,  which  busi- 
ness he  also  quit  in  time  to  save  his  bacon . 
independent  in  circumstances. 

"     7.  Dead. 

"     8.  Broke  ;  resides  at  St.  Louis. 

"  9.  A  firm  ;  one  of  the  partners  dead  ;  the  other  out 
of  business  ;  both  insolvent. 

"  10.  Partners  ;  both  dead. 

"  11.  Partners;  broke;  one  now  a  book-keeper,  the 
other  dead. 

"  12.  Became  embarrassed,  and  swallowed  poison. 

"  13.  A  firm  ;  broke. 

"  14.  A  firm  ;  broke  ;  one  of  the  partners  died  a  com- 
mon sot ;  the  others  left  the  city. 

"  15.  Broke,  and  left  the  city. 

"  16.  A  firm  ;  all  its  members  out  of  business. 

"  17.  A  firm  ;  senior  partner  dead. 

"  18.  A  firm  ;  senior  partner  dead,  junior  resides  at 
Toledo. 

"  19.  Is  now  a  clerk,  and  left  Cincinnati,  after  becom- 
ing intemperate. 

"  20,  21,  22,  23.     Died  intemperate. 

"  26.  A  firm  ;  one  of  the  partners  in  another  business  ; 
one  removed  to  New  York,  and  one  a  clerk. 

"  27.  Broke  ;  and  drowned  himself  in  the  Ohio. 


How  to  make  Money.  95 

"'  No.  28.  Broke  ;  died  of  delirium  tremens. 

"     29,  35,  36,  37,  38.     Broke,  and  removed  to  other 

cities. 
"     32.  Out  of  business,  having  broke  three  times. 
"     33.  Broke  ;  now  dealing  in  flour. 

"  '  My  list  comprehends  some  400  business  men,  oi 
which  the  above  is  a  sample.  I  know  oiovXfive  now  in 
business  who  were  so  twenty  years  since.  Such  is  mer- 
cantile success.' 

u  From  '  Report  of  his  Majesty's  Commissioners  for 
inquiring  into  the  Administration  and  Practical  Opera- 
tion of  the  Poor  Laws,  1834/  one  of  the  officers  gave  the 
subjoined  return : — 

" '  As  far  as  I  can  recollect:,  from  the  books  and  docu- 
ments furnished  by  the  bankrupts,  it  seems  to  me  that 
fourteen  have  been  ruined  by  speculations  in  things  with 
which  they  were  unacquainted  ;  three  by  neglected 
book-keeping  ;  ten  by  trading  beyond  their  capital  and 
facile  means,  and  the  consequent  loss  and  expense  of 
accommodation  bills  ;  forty-nine  by  expending  more  than 
they  could  reasonably  hope  their  profits  would  be, 
though  their  business  yielded  a  fair  return ;  none  by  any 
general  distress,  or  the  falling  off  of  any  particular  branch 
of  trade.' 

•  Another  officer  states  : — 

I 

" '  The  new  court  has  been  open  upwards  of  eighteen 

months,  during  which   period    fifty-two  cases  of  bank- 
ruptcy have  come  under  my  care.      To  the  best  of  my 


g6  How  to  make  Money. 

judgment,  not  one  of  them  cajti  be  attributed  to  any 
general  distress.  It  is  my  opinion  that  thirty-two  of 
them  have  arisen  from  an  imprudent  expenditure,  and 
five  partly  from  that  cause,  and  partly  from  a  pressure  on 
the  business  in  which  the  bankrupt  was  employed — 
fifteen  I  attribute  to  imprudent  speculations,  combined, 
in  many  instances,  with  an  extravagant  mode  of  life. 
Among  these  fifteen  I  find  a  tailor,  in  a  very  small  way 
of  business,  borrowing  money  to  become  the  owner  of  a 
West  India  ship  trading  to  Jamaica,  a  concern  with 
which  he  was  wholly  unacquainted ;  consequently,  he 
was  cheated  in  every  way  and  speedily  ruined.  A  Lon- 
don publican,  having  a  slight  knowledge  of  science,  ne- 
glects his  business  here  and  goes  over  to  France,  for  the 
purpose  of  entering  into  a  contract  with  the  French 
authorities  for  the  supply  of  Paris  with  water.  A  work- 
ing goldsmith,  never  having  had  £10,  takes  Saville  House, 
Leicester  Square,  and  engages  singers  and  musicians  for 
the  purpose  of  establishing  concerts.  The  thirty-two 
classed  as  failing  through  imprudences  in  their  mode  of, 
living,  include  many  whose  necessities,  leading  them  to 
resort  to  accommodation-bill  transactions,  have  become 
the  prey  of  money-lenders  and  their  attendant  harpies, 
the  inferior  class  of  solicitors.'  " 

From  these  statistics  the  money-maker  might  shrink 
with  terror  and  internal  apprehension  of  almost  certain 
poverty.  But  in  this  list  are  found  some  who  have  suc- 
ceeded well ;  hence,  if  one  has  done  it,  another  by  fol- 
lowing the  same  general  course  has  the  same  chance. 
Mercantile  business  can  be  conducted  so  as  to  be  profit- 
able, and  as  certaiiily  so  as  banking  business.  We  hazard 
nothing  in  making  this  assertion  ;  and  if  authors  had  not 


How  to  make  Money.  97 

failed  to  prove  the  postulate  by  showing  the  defects  of 
mismanaged  mercantile  business,  no  new  works  on  the 
subject  of  money-making  would  be  required.  Freedley 
remarks  :  "  As  to  the  causes  of  failures,  we  are  sorry  to 
say,  that  we  have  not  been  able  to  find  any  satisfactory 
certificate." 

We  assert  that  the  causes  of  failure  in  mercantile  or 
every  other  business  are  as  apparent  as  the  causes  of 
failure  in  banking.  There  can  be  no  question  on  this  sub- 
ject. All  banking  is  not  successful  ;  but  if  the  officers 
are  honest  and  capable,  hopeless  failure  seldom,  if  ever, 
occurs.  To  make  merchandizing  as  safe  as  banking  is 
all  that  the  most  conservative  could  desire.  Banking, 
generally  speaking,  is  conducted  by  individuals  who  have 
had  large  experience  in  other  business,  and  have  been 
measurably  successful.  The  securities,  and,  in  truth,  all 
the  business  transactions,  are  the  result  of  conference,  de- 
liberation, and  argument y  between  several  persons  well 
trained  in  business.  By  this  means  all  doubtful  opera- 
tions and  securities  are  excluded,  and  only  those  entered 
into  in  which  all  agree. 

Mercantile  business,  on  the  other  hand,  is  seldom  con- 
ducted in  this  way,  and  hence  seldom  is  successful.  Let 
any  man  or  firm  commence  dealing  in  the  articles  them- 
selves instead  of  in  the  paper  which  represents  them, 
such  as  the  bankers  do,  and  use  the  same  discrimination 
in  judging  of  credits,  have  the  same  amount  of  capital 
in  proportion  to  the  amount  done,  and  the  mercantile 
business  would  pay  the  best.  The  losses  would  be  no 
more,  and  the  profits  greater.  Who  are  these  who  go 
into  business  of  this  nature  ?  A,  has  a  son  who  has 
agonized  in  kid  gloves  a  term  of  three  or  four  years  as 
clerk  in  some  well  regulated  establishment,  or  perhaps 


98  How  to  make  Money. 

who  has  never  seen  the  inside  of  any  business ;  A,  is 
anxious  to  see  him  do  something  for  himself,  and  has 
money.  He  inquires  about,  and  the  son  looks  around 
also,  to  see  if  there  is  not  some  chance  of  business. 
Some  house  already  established  hears  of  this  amount  of 
money  with  a  nobody  attached  to  it,  and  being  in  want, 
as  most  houses  are  who  will  consent  to  take  a  stranger 
into  their  business,  agree  to  the  terms,  and  the  young 
man  in  kids  becomes  the  tail-end  of  a  sign  in  gilt,  or 
&  Co.,  patched  on  by  the  skill  of  the  sign-painter. 

The  man  in  kids  has  been  informed  how  much  his  capital 
will  yield  him  of  profits,  and  hence,  as  profits  are  made 
to  live  on,  he  arranges,  by  means  of  boarding-house, 
livery-stable,  and  the  like,  a  basis  of  expenditure  corre- 
sponding with  the  golden  bait  held  out  by  the  former 
firm.  The  capital  put  in  is  speedily  dispersed  to  pay 
borrowed  money  and  such-like  little  arrearages  of  the 
firm,  and  the  balance  runs  smoothly  into  paying  the  first 
notes  which  become  due  for  merchandize  already  sold 
and  lost.  The  new  firm  obtains  new  credit,  more  goods 
are  purchased  than  ever,  more  business  is  done,  and  the 
books  show  heavy  gains.  The  young  man  in  kids  re- 
ports the  result  to  his  delighted  father,  and  the  swollen 
income  of  the  young  man  makes  him  at  once  a  prodigy 
in  the  family,  and  a  speculation  among  the  dowagers  who 
are  looking  out  a  suitable  match  for  their  daughters. 
His  society  becomes  sought  after,  he  is  invited  to  dinners, 
balls,  parties,  and  evening  sociables  ;  and  finally  finds  him- 
self engaged,  then  married.  All  are  delighted  ;  money 
flies  right  and  left ;  for,  from  appearances  and  from  what 
the  book-keeper  reports,  after  all  such  abatements  of  in- 
come there  is  a  large  balance  left.  No  one  need  be  told 
that  the  affairs  of  the  firm  soon  become  involved  ;  a  general 


How  to  make  Money.  99 

smash-up  takes  place ;  and  the  members,  after  a  year 
or  two  spent  on  what  little  money  each  could  gather  from 
the  crumbling  ruins  for  immediate  want,  then  either  take 
up  some  new  business,  or,  profiting  by  sad  experience, 
begin  anew. 

This  is  but  one  phase  of  embryo  mercantile  life,  and 
may  be  regarded  as  an  extreme  one;  but  the  formula 
will  answer  for  almost  any  unsuccessful  case  by  making 
substitution  of  other  states  of  life  and  circumstances.  If 
ignorance  be  substituted  for  the  kid-gloves  in  this  formula, 
a  still  larger  class  of  failures  will  be  portrayed,  and  so  on 
with  the  entire  catalogue  of  qualities  which  insure  the 
same  result.  There  are,  however,  cases  of  failure  having 
few  of  these  elements  in  them.  Firms  may  be  prudent, 
careful,  and  successful  for  a  series  of  years,  and  then  be 
borne  down  by  misfortunes  apparently  beyond  their  con- 
trol. As  a  means,  however,  of  money-making,  certainly 
no  surer  business  can  be  found  if  properly  conducted.  It 
is  based  in  the  necessities  of  life,  and  money  and  profit 
must  flow  out  of  it.  The  manner  of  conducting  it 
rightly  is  alone  necessary  to  be  known,  and  when  known, 
followed,  and  success  will  attend  in  almost  every  instance  ; 
the  exceptions  will  be  so  few  that  they  may  be  set  down 
to  incompetency. 

The  direct  cause  of  mercantile  failure  can  in  most, 
cases  be  traced  to  the  banks  with  which  they  do  their 
business.  This  is  a  serious  evil ;  but  there  is  no  remedy 
for  it  except  in  the  individuals  engaged  taking  proper 
views  of  the  initiatory  steps.  The  firm  opens  an  account 
with  a  bank  or  banks,  and  deposits  all  its  spare  funds. 
As  long  as  the  surplus  funds  last  the  bank  will  lend  on 
good  paper  presented,  and  sometimes  longer.  The  mer- 
chant, manufacturer,  or  mechanic,  soon  bases  his  course 


IOO  How  to  make  Money. 

of  business  upon  the  implied  and  possibly  agreed  upon 
amount  or  line  of  discount.  New  enterprises  are  gone 
into,  legitimate  in  their  nature,  but  requiring  a  little  more 
money  than  anticipated,  and  the  balance  in  the  bank  ac- 
count is  reduced.  The  argus  eye  of  the  president  or 
casnier  lights  upon  the  figures,  and  the  application  for  a 
new  loan  is  refused.  As  helpless  in  the  hands  of  the 
banks  as  poverty,  he  is  bound  to  seek  money  from  other 
sources  ;  he  applies  to  an  outside  money-lender,  and  is 
met  with  the  singular  question  :  Why  will  not  your  bank 
do  your  paper  ?  Distrust  seizes  upon  him,  and  now  the 
man  must  submit  to  a  deep  shave,  and  the  piling  on  of 
securities  till  he  cramps  himself,  or  else  he  must  stop. 

The  bank,  on  the  other  hand,  notwithstanding  the  im- 
plied bargain,  and  the  fact  that  he  has  paid  all  as  yet, 
finding  that  he  is  compelled  to  resort  to  shaves,  concludes 
that  his  paper  is  not  safe,  and  finally  runs  out  his  dis- 
count line.  If  he  survives,  and  has  been  able  to  main- 
tain himself,  they  grant  him  a  new  favor,  and  squeeze 
him  anew  when  the  time  comes.  These  repeated  a  few 
times  ruin  the  borrower,  when  he  cannot  succeed  in 
getting  money  outside  or  in  the  bank,  and  failure  is  the 
consequence.  The  bank,  however,  cannot  be  said  to  be 
in  fault,  for  they  are  bound  to  be  secure,  though  there 
may  be  fault  bound  up  in  the  transaction  between  the 
parties  which  it  is  difficult  to  determine  how  far  of  right 
it  belongs  to  the  one,  or  how  far  to  the  other. 

These  difficulties  and  dangers  can  all  be  avoided,  and 
the  manner  will  be  explained  hereafter ;  the  point  now 
in  hand  being  to  show  how  the  most  money  can  be  made 
in  every  department  of  life — the  handling  it  after  it  is 
made  being  quite  a  different  trade.  The  one  may  be 
well  understood  by  a  person,  and  he  be  successful,  and 


How  to  make  Money.  101 

the  other  not  understood  in  the  first  element,  anc  hence 
success,  failure,  and  poverty,  go  hand  in  hand  through 
life  with  the  same  individual. 

How  to  make  the  most  money  out  of  every  occupation 
in  life  is  a  study.  There  are  two  great  classes  to  be  con- 
sidered with  this  view,  the  employer  and  the  employed. 
The  employers  make  money  by  the  services  of  the  em- 
ployed, while  the  employed  receive  money  for  their  ser- 
vices to  the  employers.  So  far  as  making  money,  both 
are  governed  by  the  same  general  principles.  To  make 
the  services  of  the  employed  valuable  is  the  object  of  the 
employers,  and  they  make  money  just  in  proportion  as 
they  are  valuable  for  the  money  paid.  While  the  em- 
ployed should  see  to  it  that  their  services  are  as  valuable 
as  the  money  paid,  and  if  they  are  more  so,  they  are 
certain  to  be  rewarded  dollar  for  dollar.  Hence  it  is  the 
object,  or  should  be  the  object,  of  the  employed  to  be  as 
valuable  as  possible  to  the  employer. 

How  is  this  to  be  accomplished  ?  A  merchant  who 
trades  with  you  is  in  reality  employed  by  you,  and  you 
pay  for  his  services  by  the  profit  you  pay  him  on  his 
goods.  Is  it  his  interest  to  serve  you  well  ?  If  he  does 
not,  he  loses  your  trade,  and  you  go  elsewhere.  If  he 
deals  dishonestly  with  you,  it  is  not  probable  that  you 
will  return  to  him  to  have  it  repeated.  If  he  is  uncivil 
or  impolite,  disobliging  or  uncourteous,  you  feel  piqued, 
and  lose  your  interest  in  him  and  in  his  establishment, 
and  you  naturally  look  elsewhere  to  supply  your  wants. 
If  you  find  goods  equally  cheap,  and  sold  by  a  nice,  civil, 
and  attractive  man,  you  will  buy  of  him  and  leave  the 
other.  If  you  find  the  first  one's  goods  cheaper,  and 
enough  so  to  pay  you  for  dealing  with  an  unpleasant  man, 
you  may  buy  of  him. 


102  How  to  make  Money. 

Now  let  us  see  what  it  costs  the  first  man  to  be  "  un- 
civil, impolite,  disobliging,  or  uncourteous."  This  cus- 
tomer may  purchase,  if  at  retail,  $1,000  in  a  year,  on 
which  the  profit  would  be  say  $200.  If  he  fails  to  sell 
him  by  reason  of  a  slight  feeling  in  his  breast,  the  mer- 
chant would  lose  $200  at  once.  This,  improved  at  com- 
pound interest  at  seven  per  cent,  for  the  ordinary  term 
of  twenty-five  years  of  business,  would  be  the  neat  little 
sum  of  $1,084.  If  he  lost  one  customer  of  this  kind 
each  year  from  the  same  cause,  he  would  lose  sixty-three 
cents  a  day,  which,  by  looking  at  the  tables,  if  improved 
at  seven  per  cent,  for  the  twenty-five  years,  would  amount 
to  the  splendid  sum  of  $12,915 — rather  an  expensive 
amusement;  while  the  pleasant  merchant  would  in  like 
manner  gain  these  sums  respectively. 

Then  suppose  we  take  the  case  of  the  wholesale  mer- 
chant dealing  in  correspondingly  large  sums.  If  he  lost 
the  custom  of  a  firm,  amounting  in  a  year  to  $15,000,  on 
which  there  was  a  profit  of  $1,500,  he  would  lose,  if  that 
sum  be  improved  at  seven  per  cent.,  in  his  term  of  twen- 
ty-five years  in  business,  $8,145  ;  or  if  he  did  the  same 
every  year  for  the  twenty-five  years  in  business,  he  would 
lose  the  sum  of  $98,199.  The  reader  probably  thinks  by 
this  time  that  this  little  element  in  business  is  worth 
looking  at  rather  carefully. 

These  calculations  are  based  upon  the  supposition  that 
the  uncivil  and  civil  merchants  sell  at  the  same  profit. 
But  every  one  knows  that  the  latter  can  get  more  for 
his  goods  than  the  former.  The  gain,  therefore,  of  the 
latter  will  be  greater  than  the  loss  of  the  former.  But 
suppose  we  look  at  the  case  where  one  is  compelled  to 
get  the  same  amount  of  custom  by  taking  off  five  per  cent, 
more  than  the  other  can  sell  for  by  reason  of  his  attractive 


How  to  make  Money.  103 

manners.  They  both  sell  $100,000  per  annum,  one 
making  $15,000  and  the  other  making  $20,000.  The 
first  wins  in  a  25  year  business,  by  the  tables,  $47.92  per 
day,  making,  improved  at  7  per  cent.,  $982,416  at  the  end 
of  25  years,  while  the  other  makes  $63.90  per  day,  which, 
improved  in  like  manner,  gives  $1,310,025,  making  a  dif- 
ference of  $327,609,  rather  a  large  sum  to  lose  by  mere 
mannerism,  but  by  no  means  as  large  a  sum  as  the  civil 
merchant  would  make  in  proportion. 

No  merchant  can  afford  to  be  uncivil ;  and  from  a 
knowledge  of  how  many  are  so  in  the  transaction  of  their 
business,  can  any  one  wonder  why  they  fail  when  they  add 
this  expense  to  the  other  expenses  of  life  ?  By  the  term 
uncivil,  as  used  here,  is  meant  that  mannerism  in  all  busi- 
ness intercourse  which  repels  rather  than  attracts — that 
which  leaves  a  barb  rather  than  a  pleasant  and  interested 
remembrance.  The  more  nearly  the  term,  however,  takes 
its  full  force  and  meaning,  or  goes  beyond  that,  the  more 
it  becomes  as  an  expensive  amusement,  and  the  nearer  it 
brings  the  employed,  no  matter  who  he  may  be,  to  failure 
or  greater  loss  of  money. 

The  more  you  can,  then,  by  pleasant  and  kind  treatment 
interest  the  employer  in  your  business,  the  more  naturally 
he  will  be  interested  in  the  employed,  and  vice  versa; 
and  mutual  benefit  in  money  will  result  to  both.  Let  us 
name  a  case  which  actually  occurred  in  New  York  about 
thirty  years  ago. 

A  country  manufacturer  came  to  the  city  to  purchase 
metal  to  be  used  in  his  business,  and,  being  dressed  in 
rather  a  rough  garb,  was  not  in  his  personal  appearance 
very  prepossessing.  But  as  he  always  paid  cash  for  what 
he  purchased,  and  being  rather  abrupt  and  eccentric  in 
his  way,  he  did  not  pay  much  attention  to  style.     He  went 

5 


104  How  to  make  Moiicy. 

to  one  of  the  largest  metal  houses  in  the  city  and  inquired 
the  price  of  the  material  he  wanted  ;  the  seller,  supposing 
that  he  was  some  retail  customer  wanting  to  know  the 
wholesale  price  in  order  to  govern  a  small  purchase, 
asked  the  retail  price.  The  manufacturer  said  he  wanted 
to  know  the  price  of  a  quantity.  The  merchant  asked 
him  how  much  he  wanted.  Becoming  a  little  piqued,  the 
manufacturer  said,  "  That  is  my  business."  The  merchant, 
still  feeling  that  the  countryman  was  only  asking  out  of 
curiosity,  set  his  price,  and  the  manufacturer  departed, 
never  to  enter  that  store  again.  Both  houses  are  still  in 
existence,  the  older  members  having  died,  and  other  part- 
ners and  younger  men  carrying  on  the  business. 

Now  let  us  examine  this  case,  for  it  is  a  large  one.  For 
the  whole  time  since,  the  country  manufacturer  has  pur- 
chased on  an  average  $40,000  worth  of  materials  yearly, 
every  dollar  of  which  this  New  York  house  could  have 
sold  him  if  they  had  done  so  at  a  right  price ;  and  as  he  was 
a  close  buyer,  could  probably  have  made  5  per  cent,  and  got 
the  cash.  By  this  little  trifling  affair  that  house  lost 
$2,000  a  year  for  30  years  ;  and  if  that  sum  had  been 
saved  and  improved  at  7  per  cent,  during  that  time,  it 
would  now  amount  to  $196,401  ;  rather  an  expensive  three 
minutes'  talk,  springing  from  ignorance  and  incivility. 

No  man  in  business  or  money-making  can  tell  what 
word  or  action  may  make  him  or  lose  him  money.  No 
one  will  make,  in  all  probability,  by  chafing  those  who 
come  in  contact  with  him,  while  he  may  lose  largely  by 
it.  The  most  important  principle  in  money-making  is  to 
deal  with  every  one  in  such  a  manner  that  he  is  satisfied 
and  pleased.  If  you  have  done  this  to  one,  you  have  laid 
a  train  of  influence,  advertisement,  and  interest,  wherever 
he  goes  ;  for  it  is  as  natural  for  persons  to  speak  well 


How  to  make  Money.  105 

of  any  one,  or  of  any  establishment,  that  has  served  them 
well,  and  in  which  they  are  interested,  as  it  is  for  water 
to  run  down  hill.  To  advertise  to  accomplish  the  same 
end  would  cost  much  money,  so  that  your  mannerism  or 
action  may  not  cost  you  anything  to  satisfy  and  please ; 
while  you  make  dollars  by  securing  an  influence  that  will 
bring  you  money  from  every  quarter  of  the  compass.  If 
you  want  to  make  money,  don't  read  this  and  forget  it. 
When  one  has  made  a  fortune  he  may  do  such  things,  but 
even  then  he  may  lose  in  like  manner.  An  instance  as 
an  illustration,  occurred  in  the  lower  part  of  the  city  about 
1 839.  A  fire  occurred,  and  extended  to  a  large  warehouse 
owned  by  a  close-fisted,  grinding  rich  man,  about  as 
crabbed  and  ugly  as  he  well  could  be.  The  fire  was  just 
taking  in  an  upper  story  by  heated  iron  window-shutters, 
and,  it  was  believed,  could  have  been  easily  extinguished  by 
the  firemen.  Calls  were  made  for  an  engine-pipe,  when 
one  of  the  firemen  cried  out :  "  This  is  old  S.'s  store  ;  let 
her  burn."  Whether  this  was  the  cause  or  not,  no  one 
could  tell ;  but  the  warehouse  was  consumed  without 
insurance,  at  a  loss  to  the  crusty  old  gentleman's  estate 
of  $30,000. 

We  could  go  on  and  give  you  instances  without  number 
where  heavy  losses,  and  even  fortunes,  have  been  lost  or 
not  made  by  some  apparent  immaterial  act  or  word  which 
at  the  moment  would  pass  unnoticed.  These,  however, 
are  the  straws  of  the  money-making  life  ;  and,  important 
as  they  are  in  themselves,  there  are  a  thousand  and  one 
other  items  which  conduce  more  or  less  to  the  same  end. 
As  general  rules,  the  following  may  be  laid  down  as  the 
more  important : 

First. — A  settled  character  for  sobriety,  honesty,  in- 
dustry, veracity,  and  trustworthiness. 


106  Hozv  to  wake  Money. 

Second. — Pleasant,  agreeable,  and  attractive  manners  ; 
never  repulsive,  civil  without  fawning  ;  dignified,  without 
reserve  ;  and  an  even  temper,  never  allowing  it  to  be 
ruffled  in  a  business  transaction. 

Third. — S'tudy  the  interests  of  those  you  deal  with  as 
well  as  your  own,  and  let  them  see  and  feel  it,  as  that  will 
secure  a  repetition  of  transactions,  or  bring  business 
through  those  with  whom  you  deal. 

Fourth. — Be  the  most  skilful  in  your  calling,  summon- 
ing to  your  aid  to  accomplish  this  end  the  knowledge  of 
others  which  can  be  gained  by  reading,  conversation,  or 
observation  ;  remembering  always  that  knowledge  and 
its  application  with  skill  is  the  most  profitable  quality 
which  you  can  possess,  and  that  every  new  idea  you 
acquire  and  use  well,  will  be,  without  doubt,  a  dollar 
in  your  purse,  gained  or  not  lost,  and  possibly  many 
more. 

No  one  can  fail  in  this  country  to  make  money  who 
can  gain  employment  and*  continues  in  it  honestly  and 
industriously.  It  is  the  easiest  part  of  acquiring  an 
independence  or  a  fortune.  The  most  difficult  is  the 
investing  and  saving,  by  which,  what  you  do  make  shall 
be  safely  and  surely  set  to  work  making  more.  As  the 
reader  will  perceive,  the  moment  he  has  money  to  invest 
and  set  at  work  he  wants  knowledge  which  he  has  not 
probably  gained  in  his  business.  For  how  can  the 
laborer,  who  has  never  seen  the  thing  done  or  done  it, 
be  expected  to  know  how ;  or  the  carpenter,  who  has 
shoved  his  plane  for  years  to  know  how  to  do  that  well, 
be  supposed  to  know  the  business  of  a  financier  or 
banker,  which  takes  a  like  apprenticeship  and  extensive 
knowledge  to  acquire.  To  know  that  you  do  not  know  how 
to  do  the  business  of  a  banker,  if  you  have  not  been 


How  to  make  Money.  107 

educated  to  it,  is  the  first  and  all-importatit  idea  in  saving 
what  you  earn.  It  is  like  the  child  who  would  be  as  apt 
to  play  with  live  coals  as  he  would  with  his  toys,  if  he 
had  not  been  told  they  would  burn  him,  or  learned  the 
lesson  by  experience. 

The  old  and  familiar  adage,  "  Every  one  to  his  trade," 
applies  in  this  case  with  astonishing  force.  And,  reader, 
do  not  suppose  for  a  moment  that  it  applies  simply  to 
the  laborer  or  mechanic.  All,  or  nearly  all  who  make, 
are  ignorant  of  the  trade  of  investing  and  making  money 
with  money.  The  intelligent  merchant  may  know  how, 
but,  alas !  how  many  failures  do  we  see  in  this  line  of 
business  ;  not  failures  to  make  money,  for  they  univer- 
sally make  money,  but  the  trouble  lies  not  in  that  but  in 
the  values  of  what  they  invest  it  in  after  it  is  made  or 
while  they  are  making  it. 

Then,  when  the  reader  has  been  told  to  beware — look 
out,  when  he  has  made  a  dollar — and  that  his  danger 
begins  just  here  and  nowhere  else,  he  will  have  learned 
the  most  valuable  lesson  of  his  life  in  money-making. 
There  is  no  fear  of  employment — there  is  no  fear  of  get- 
ting business — selling  goods  or  doing  a  money-making 
business  in  what  you  undertake  ;  all  the  danger  and 
trouble  lies  in  parting  with  your  money  or  your  valuables 
to  increase  and  make  more.  And  if  you  read  this  book  to 
gain  knowledge  of  how  to  accumulate,  stop  right  here, 
read  the  last  page  over  and  over  and  over  again,  and  you 
will  know  where  all  the  trouble  lies  why  you  have  not 
made  a  fortune,  if  you  have  not ;  and  you  can  put  your 
finger  on  the  very  spot  where  you  have  failed  or  will  fail, 
if  you  do.     The  remedy  will  be  shown  hereafter. 


108  How  to  make  Money. 


CHAPTER  VII. 

MANUAL    LABOR. 

Underlies  all. — Great  motor. — Value  varies. — Good  to  make  money. 
— Dollar  a  day. — Big  result. — Calculate  independence. — How 
much. — Laborer's  interest. — Advancement. — Great  banker. — 
Porter. — Sweep  out  — Use. — Shine  somewhere. — Supply  and  de- 
mand.— Merchants'  combination. — Brings  competition. — Loss 
results. — Qualities  vary. — Sell  first  — Sell  next. — Trades-Union. 
— All  labor  same  value. — Business  stand-still. — High  prices. — 
Complain  of  landlords. — Don't  see  it. — Values  will  tell. — Peo- 
ple want  work. — Will  have  it. — Trades-Union  or  no  Trades- 
Union. — Labor  threatens  capital. — Capital  replies. — Remedy. — 
Poor  distressed. — Business  leaving. — Find  level. — Managers 
should  see  it. — Conflict  coming. — Ground  swell. — Land  trem- 
ble.— Best  get  work. — Poor  none. — Best  win. — Poorest  lose. — 
Who  discharged.  —  Agreement. — Very  nice.  —  Roped  in. — • 
They  will  see  it. — Cunning  plan. — Poor,  poorer. — Rich,  richer. 
— Rectify  itself. — Capital  must  buy. — Conflict. — Capital  live. — 
Labor  yield. — Money  made. — Good  business. 

This  class  of  labor  underlies  the  whole  active  structure 
of  society — is  the  bone  and  sinew  of  the  nation,  and  the 
foundation  of  its  wealth.  It  feeds  and  clothes  all — it 
builds  our  houses,  works  our  lands,  digs  our  canals, 
threads  our  railroads,  makes  our  ships,  moves  on  our 
factories,  machine-shops,  and  commerce.  It  is  the  great 
manual  motor  which  is  to  society  what  steam  is  to  the 
engine.  Like  other  kinds  of  labor,  its  value  depends 
upon  its  quality,  and  that  depends  upon  knowledge  and 
skill.  The  laborer,  no  matter  in  what  he  may  be  em- 
ployed, has  the  means  of  making  money  in  two  ways  : 
first,  by  his  labor,  no  matter  what  its  quality  ;  second,  by 


How  to  make  Money.  109 

increasing  the  value  of  his  labor  by  the  application  of 
knowledge  and  skill  in  his  business.  Though  there  is 
manual  labor  performed  by  every  one  in  some  shape  or 
another,  the  term  manual  labor  here  is  intended  to  apply 
to  those  who  labor  for  wages. 

As  a  means  of  making  money,  considering  everything, 
it  is  quite  as  good  as  any  other.  The  results  may  not 
be  as  great ;  but,  on  the  other  hand,  the  wants  and 
necessities  are  not  so  great  as  in  the  more  extravagant 
walks  of  life.  It  can  be  easily  shown  that  the  laborer  by 
skill  and  a  proper  economy  can  have  more  money  at 
fifty  years  of  age  than  the  average  of  merchants.  But 
if  the  merchant  would  in  a  parallel  way  pursue  the  same 
course  which  the  laborer  would  have  to  do  to  accomplish 
this,  the  merchant  would  have  the  most,  undoubtedly. 

Let  the  laborer  look  at  the  tables  of  earnings,  and 
see  what  he  will  have  if  he  makes  just  one  dollar  a 
day,  and  puts  it  in  the  savings  bank,  and  it  is  improved 
at  six  per  cent,  for  thirty  years,  or  from  the  day  he  is 
twenty  till  he  is  fifty  years  of  age.  It  would  amount  to 
$25,518,  a  very  handsome  fortune,  and  enough  to  sup- 
port him  handsomely  the  balance  of  his  days  without 
labor.  But,  suppose  he  would  wish  to  work  on  till  he 
obtained  his  independence  from  labor  without  wishing 
for  more,  how  is  he  to  find  out  that  amount,  and  the 
way  to  do  it  ?  He  must  decide  how  much  he  requires  a 
day  for  this  end — say  two  dollars.  Then  he  has  to  gain 
a  sum  that  would,  if  placed  at  interest  at  six  per  cent,  or 
more,  give  just  this  sum.  Then  how  long  would  he  have 
to  work,  at  what  rate  must  his  savings  be  improved,  and 
how  much  would  he  have  to  save  per  day  to  accomplish 
this  interest  of  two  dollars  per  day  at  six  per  cent.  ? 

The  amount   to  be  saved  would  be  $12,167  ;  now,  by 


no  Hoiv  to  make  Money. 

examining  the  tables  of  thirty  years  ;  by  saving  sixty 
cents  a  day  you  will  have  $12,770,  if  you  have  it 
improved  at  five  per  cent.  If  you  had  saved  fifty  cents  a 
day,  and  improved  it  at  six  per  cent.,  you  would  have 
$12,759.  ^  vou  nad  saved  forty  cents  a  day,  and 
improved  it  at  seven  per  cent,  you  would  have  $12,302, 
and  your  independence  would  be  accomplished  at  fifty 
years  of  age  if  you  began  working  at  twenty  to  this  end. 
By  the  same  means  any  laborer,  male  or  female,  can 
determine  for  themselves  at  what  age  they  will  say  they 
will  achieve  their  independence,  and  such  will  save 
accordingly  ;  and  if  good  health  and  strength  attend 
them,  they  can  accomplish  it.  If  not,  their  little  reserve 
of  money  under  these  circumstances  will  in  all  probabili- 
ty give  them  even  more  substantial  comfort  than  the 
independence  when  gained. 

A  laborer,  if  he  knows  his  own  interest,  has  every 
incentive  to  make  his  labor  most  valuable  by  the  acqui- 
sition of  knowledge  and  skill,  and  then  to  perform  it  in 
the  best  way.  By  this  means  he  will  make  money,  and 
in  the  direct  ratio  of  its  positive  value.  Then,  by  plea- 
sant ways  and  obliging  manners,  and  by  taking  an 
interest  in  what  he  is  doing,  and  letting  his  employer 
see  that  he  is  taking  an  interest  in  his  interests,  he 
will  always  procure  the  highest  wages  ;  remembering 
always  that  he  or  she  has  the  same  opportunity  of 
advancement  to  higher  positions  in  life,  that  others  have. 
One  of  the  largest  bankers  in  New  York,  who  amassed 
in  his  day  one  of  the  greatest  fortunes,  commenced  as  a 
porter,  and  for  some  years  swept  out  the  very  banking- 
house  which  he  afterwards  managed  with  ability  and  grand 
success.  The  instances  are  not  few,  but  many,  where 
mere  day-laborers  have,  by  industry,  perseverance,  and 


Hozv  to  make  Money.  Ill 

skill,  risen  far  above  their  former  employers  in  wealth 
and  position.  In  truth,  it  makes  but  little  difference 
where  the  industrious,  honest,  frugal,  and  persevering 
start  in  life,  they  will  shine  out  somewhere,  their  quali- 
ties will  bring  their  reward  sooner  or  later,  and  espe- 
cially in  this  country,  where  all  have  an  equal  chance. 

The  price  of  labor  varies  like  every  other  commodity, 
and  has  its  market  value.  This  depends  upon  the 
supply  and  demand.  The  best  rule  for  a  retail  merchant 
is  to  work  on  low  profits,  as  this  will  bring  the  largest 
result  in  the  end.  The  same  rule  is  a  good  one  for  the 
laborer ;  work  at  a  fair,  not  an  exorbitant  price,  and  you  will 
get  constant  employment,  as  the  trader  will  get  constant 
trade.  If  the  traders  combined  and  put  up  the  price  oi 
their  goods,  and  said  they  would  not  sell  without  they 
received  a  larger  profit  than  competition  would  establish, 
it  is  plain  to  see  the  result;  Other  merchants  would  be 
found  who  would  open  stores,  and  sell  when  they  could 
make  a  profit ;  and  those  in  the  combination  would  be 
compelled  to  keep  their  stores  open  and  pay  their  own 
expenses  and  make  nothing,  while  the  others  not  in  it 
would  sell  all  the  goods — make  their  own  expenses, 
besides  making  a  profit. 

Thus,  again,  suppose  they  were  all  to  combine  to  sell 
any  one  article  at  a  given  price,  say  hops,  butter,  pork, 
or  any  other  article.  As  any  one.  knows,  these  articles 
vary  in  quality ;  and  the  consequence  would  be  that  the 
merchant  who  had  the  best  pork  or  the  best  butter 
would  sell  all  the  pork  and  all  the  butter,  and  the  mer- 
chants who  had  nearly  as  good  would  sell  none.  In 
order,  then,  that  all  the  merchants  could  sell  alike  they 
would  all  be  compelled  to  keep  just  the  same  quality  of 
goods.     But  every  one  knows,  goods  of  the  same  kind 

5* 


1 1 2  How  to  make  Money. 

vary  in  quality,  and  the  undertaking  would  result  in  just 
this — the  good  would  be  sold  first,  the  poor  next,  and  pos- 
sibly be  left  on  hand  to  perish. 

Demand  and  supply  in  labor  must  be  governed  by  the 
same  principles  of  prices  as  reign  in  every  other  depart- 
ment of  usefulness  ;  and  to  endeavor  to  regulate  by  any 
other  rule  will  lead  to  loss  of  money  in  the  end.  Trades- 
Union  Societies  have  been  formed  in  this  country  to 
regulate  the  price  of  labor  in  the  various  occupations  by 
a  set-up  price  for  a  day's  labor,  or  for  doing  a  certain 
amount  of  work.  The  result  is,  that  prices  of  labor  have 
been  advanced  to  such  an  extent  that  capital  does  not 
find  it  profitable  to  employ  it ;  hence  many  of  the  me- 
chanical interests  in  this  country  are  at  a  stand-still. 
Few  new  buildings  are  being  erected  in  New  York,  and 
the  prices  of  rents  are  enormous.  The  very  mechanics 
who  have  checked  the  erection  of  new  buildings  for  their 
own  accommodation,  complain  of  the  landlords  for  ad- 
vancing rents  to  a  point  which  makes  it  almost  impos- 
sible, even  with  the  high  prices  of  their  labor,  to  pay. 

The  moment  one  department  of  business,  and  espe- 
cially such  an  important  one  as  labor,  is  disturbed  by  a 
combination  of  price,  every  other  dependent  upon  it  will 
in  like  manner  be  disturbed  temporarily.  But  as  in  the 
case  of  the  combination  among  the  merchants  to  advance 
the  price  of  their  goods,  there  will  soon  be  found  others 
who  will  come  into  the  market  to  sell  at  a  profit ;  and 
when  the  merchant  has  found  that  he  cannot  sell  at  the 
higher  price  in  competition  with  the  new-comers,  he  is 
compelled  to  go  back  to  the  old  mode.  But  when  he 
attempts  this  he  finds  double  the  number  of  competitors  ; 
and  as  just  so  much  and  no  more  goods  can  be  sold,  he 
discovers  to  his  great  detriment  that  he  has  a  heaviei 


How  to  make  Money.  113 

competition  than  he  ever  had,  and  in  order  to  sell,  must 
cut  under  to  get  custom.  This  all  requires  time,  but  will 
as  surely  come  as  that  people  want  goods. 

The  same  with  the  high  prices  demanded  by  the  trades- 
union.  There  are  a  great  many  people  in  this  country 
who  want  labor,  and  will  have  it ;  and  if  they  are  not  in 
the  country  now,  there  are  thousands  in  neighboring 
countries  who,  being  ground  down  in  prices  there  by 
surplus  population,  are  waiting  an  opportunity  for  em- 
ployment at  fair  prices  anywhere  they  can  get  them. 
They  will  rush  to  any  point  where  employment  can  be 
had,  trades-union  or  no  trades-union ;  as  necessity 
knows  no  law  ;  they  will  earn  where  they  can.  There  is 
any  amount  of  work  to  be  done  at  fair  prices  ;  but  capi- 
tal is  a  close  calculator,  and  generally  will  not  pay  double 
price  for  anything,  or  more  than  he  can  find  profit  in 
doing.  Labor  may  stand,  and  say  to  capital :  "  You  can't 
do  without  me."  Capital  can  say  with  more  certainty : 
"You  can't  pursue  your  trade  to  a  profit  without 
me."  And  the  spectacle  in  this  country  is  just  this 
now. 

The  remedy  is  simple,  as  it  would  be  in  the  case  of 
the  combination  of  the  merchants.  Capital  has  simply 
to  say  to  labor,  we  will  buy  you  on  the  same  terms  as  we 
buy  other  things ;  price  being  regulated  by  supply  and 
demand,  and  at  the  market  value.  We  will  not  patronize 
or  buy  of  the  merchant  who  combines  with  his  neighbors 
to  sell  flour,  or  butter,  or  bread,  at  thrice  its  value,  be- 
cause it  affects  the -poor  as  well  as  the  rich.  Nor  will  we 
have  our  work  done  by  any  one  who  hires  a  trades-union 
man,  because  he  is  combining  with  his  neighbors  to  sell 
his  labor  for  more  than  it  is  worth  in  the  market,  and 
thereby  creating  distress  among  the  poor  by  locking  up 


114  How  to  make  Money. 

capital  and  preventing  the  circulation  of  money  that 
otherwise  all  could  use  to  advantage. 

For  these  reasons,  and  others  combined,  our  ship- 
building is  leaving  the  country  ;  our  building,  and  other 
improvements,  are  greatly  checked,  and  our  labor  de- 
pendent upon  these  as  collaterals  is  by  no  means  in  a 
healthy  condition ;  and  as  a  result,  the  poor  are  made 
poorer  and  are  distressed.  This  state  of  things  will  con- 
tinue and  grow  worse,  until  things  find  their  level  in 
supply  and  demand  upon  equitable  principles.  There 
are  many  able  men  and  strong  minds  guiding  these 
trades-unions,  and  it  is  to  be  sincerely  hoped  that  their 
better  senses  and  good  judgments  will  abandon  in  time 
these  impracticable  principles,  and  guide  the  minds  of 
those  whom  they  control  to  a  just  appreciation  of  their 
own  interests  and  the  interests  of  all  concerned.  A  con- 
test of  strength  between  capital  and  labor  in  this  country 
carried  to  a  point  that  would  be  effective,  would  probably 
produce  results  little  dreamed  of  by  any.  Though  if 
this  state  of  things  continues,  it  will  come  with  a  cer- 
tainty of  the  rising  sun,  not  from  capital  itself,  for  it  can 
live  on  other  sources  of  profit,  but  it  will  come  in  a  ground- 
swell  of  the  poor  wanting  bread,  that  will  make  the  land 
tremble. 

Combinations  to  regulate  prices  never  have  succeeded 
and  never  will.  By  peculiar  circumstances  combinations 
can  be  made  temporarily  successful ;  but  the  laws  of  trade 
and  of  interchange  are  deeper  laid  than  these,  and  as  cer- 
tain as  effe6l  follows  cause  these  laws  will  remain  for  ever 
the  same.  No,  sooner  will  the  sun  rise  in  the  west  or  gra- 
vity act  upwards,  than  that  the  great  principle  of  supply 
and  demand  fixing  prices  will  be  overturned  by  combina- 
tions.    Trials  may  be  made  to  do  it,  but  they  will  end, 


How  to  make  Money.  1 1 5 

as  all  history  teaches  such  attempts  have  ended,  in 
failure. 

As  a  mere  money-making  plan  these  trades-unions 
defeat  their  own  object.  The  first-class  mechanics  are 
benefited  by  them,  while  those  who  are  not  first  class 
are  directly  the  losers.  When  there  is  work  enough  for 
all,  and  capital  can  make  his  profit,  if  the  maximum 
wages  are  obtained  by  all,  that  is,  the  best  mechanic  gets 
as  much  as  he  could  if  there  was  no  combination,  then 
the  lower  grades  get  more  than  their  labor  is  worth, 
while  the  best  get  just  what  theirs  is  worth.  Now, 
somebody  is  wronged  by  paying  more  than  he  should, 
and  common  sense  teaches  that  such  a  system  cannot 
stand.  But  suppose  capital  finds  that  it  cannot  make — 
which  it  soon  will  find — by  paying  more  than  a  thing  is 
worth,  what  then  ?  Some  one  must  be  discharged — will 
it  be  the  best  mechanic  or  the  poorest  ?  Certainly  the 
poorest.  But  suppose  capital  finds  still  further  that  it 
cannot  yet  keep  all  at  work  profitably,  what  then  ?  Why, 
the  next  poorest  will  be  discharged,  while  the  best  will 
still  retain  work,  and  will  retain  it  as  long  as  any  one  is 
employed. 

From  this  it  will  be  seen  that,  under  such  an  arrange- 
ment, the  best  mechanics  always  get  employed,  while 
the  less  skilful,  or  possibly  the  less  favored,  get  it  only 
when  there  is  work  enough  for  all,  which  seldom  hap- 
pens. The  less  skilful  are  gratified  to  have  their  ser- 
vices put  on  an  equality  in  price  with  the  most  skilled, 
and  hence  they  join,  while  in  reality  they  are  kept  out  of 
employment,  because  without  capital  is  compelled  to 
give  more  for  their  services  than  they  are  worth,  they 
will  not  be  employed  at  all.  Nor  can  the  less  valuable, 
under  such  a  combination,  compete  at  all  with  the  most 


1 1 6  How  to  make  Money. 

valuable  labor  of  the  kind.  The  result  is,  that  it  is  a 
one-sided  bargain  in  the  Trades-Union — the  least  skilled 
agreeing  to  keep  out  of  employment  and  let  the  more 
skilled  get  the  work,  except  there  be  work  enough  for  all. 
This  is  all  very  well  for  the  shrewd  ones,  but  not  so  nice 
for  those  who  are  roped  into  it  on  the  idea  that  one  man 
is  as  good  as  another,  and  one  man  has  as  many  friends 
among  the  bosses  as  another.  But  if  all  were  allowed  to 
enter  the  market  and  sell  their  labor  for  what  they  could 
get  for  it,  the  one  who  was  one-quarter  less  valuable  as 
a  mechanic  or  laborer  could  get  employment  at  that 
price  as  soon  as  the.  best,  while  now  he  has  to  stand 
back  and  let  the  best  have  work  at  all  times,  and  wait  till 
a  chance  comes  when  there  is  more  work  than  they  can 
do,  and  then  he  gets  employment. 

It  is  a  cunningly  devised  plan  to  lessen  competition 
against  the  most  skilful  mechanics  and  laborers  ;  and  be 
assured  they  will  be  found,  if  inquiry  be  made,  to  be  those 
who  were  the  getters-up  of  the  plan,  and  who  are  now 
its  strongest  supporters.  It  crushes  out  the  weak,  and 
makes  the  strong,  stronger.  In  other  words,  it  makes 
the  poor,  poorer,  and  the  rich,  richer.  Such  things  have 
been  attempted  before,  but  sooner  or  later  the  weak  have 
found  out  the  trap  into  which  they  have  fallen,  as  they 
will  do  in  this  country,  and  the  difficulty  may  rectify 
itself.  On  general  principles,  any  combination  that  will 
undertake  to  make  capital  pay  more  for  one  man's  labor 
by  half  or  a  quarter  than  it  is  worth,  will  simply  prevent 
capital  from  buying.  Nor  is  there  power  enough  in  labor 
by  any  combination  to  force  capital  to  purchase  ;  and  if 
the  struggle  ever  comes  to  that,  it  will  be  found  that 
capital  will  survive  while  labor  must  yield. 

However,  as  a  money-making  business,  it  affords  an 


How  to  make  Money.  1 1 7 

opportunity  for  all  who  can  get  employment  to  gain  an 
independence.  No  matter  what  grade  of  skill  the  me- 
chanic or  laborer  may  possess,  he  can  always  gain  em- 
ployment at  some  price  ;  and,  generally,  steady  work  at 
moderate  prices  will  in  the  long  run  produce  the  most 
money.  The  tables  of  earnings  will  be  useful  for  any 
laborer  or'  mechanic  to  study,  for  they  will  show  them 
how  small  earnings,  properly  cared  for,  will  soon  place 
them  in  independence,  and,  if  continued,  will  lead  to 
fortune. 


Il8  How  to  make  Money. 


CHAPTER  VIII. 


APPRENTICES. 


Meaning.  —  How  treated.  —  Knowledge  acquired.  —  Intermediate 
steps.  —  Farming  apprentices.  —  What  kind  of  knowledge. — 
Study,  land,  and  productions. — Use  of  tools. — How  can  I  make  ? 
Bound  out. — Spends  half. — Makes  a  farm. —  Independent. — Can 
make  a  fortune. — Mechanical  and  manufacturing  apprentices. — 
Good  prospects. — Sought  after. — Important  principles. — To-day 
and  to-morrow. — Good  pay. — Object. — Disagreeable  people. — 
No  employment. — Manners  make  money. — Equal  to  trade — 
Never  lose  a  friend. — Higher  motives. — General  character — 
Personal  attention. — Makes  money. — Reader  may  too. — Line 
upon  line. — Work  tires,  but  makes  money. — Merchant  appren- 
tices.— Not  bound  out— Higher  pay. — Dress  more  costly. — 
Same  labor  same  value. — Where  doing  best. — Too  soon. — Too 
late. — Story. — Boy  nailing  box. — Prediction. —  Richest  in  New 
York. — Straws  show  wind. — Wind  moves  straws. — Hands  in 
pockets.  —  Leaning  on  goods.  —  Door  post.  —  Conclusive.  — 
Where  begins,  where  ends. — Services  and  pay. — Pleasant  man- 
ners.— Tricks  in  trade. — Carbuncles  and  cancers. — Sure  dis- 
covered.—  Character  crystallizing.  —  Blemishes.  —  Mis-steps. — 
Widen.  —  Disagreeable  partner.  —  Under  man.  —  Deceitful.  — 
Acrimony. — Taking  advantage. — Better  leave. — Yelping  curs. 
—  Refiners  skimmer.  —  Honorable  gentlemen  . —  Student  ap- 
prentice.—Prospects  in  life. — Great  strife. —  In  one  hand,  out 
the  other. — Down-hill  side  of  life. — Labor  accumulated. 

An  apprentice,  in  its  strict  meaning,  is  one  who  is 
bound  by  a  covenant,  to  remain  with  another  for  a  cer- 
tain period,  in  order  that  he  may  obtain  a  knowledge  of 
an  art  or  trade.  But  the  term,  as  used  here,  is  intended 
to  include  all  who  are  acquiring  the  knowledge  of  an  art 
or  trade,  whether  bound  or  not.  In  every  department  of 
industry  they  have  different  kinds  of  knowledge  to  ac- 


How  to  make  Money.  119 

quire,  and  hence  what  would  be  useful  to  one,  would  be 
of  no  use  in  the  other.  The  money  compensation  during 
the  term  of  apprenticeship  is  very  small ;  and  generally 
no  charge  is  made  in  advance,  as  is  the  case  in  some 
countries.  There  are  two  intermediate  steps  to  the  prin- 
cipals in  mercantile  business — the  apprentice  and  the 
clerk;  in  the  mechanical  and  manufacturing  trades 
three — the  apprentice,  the  journeyman,  and  the  fore- 
man ;  in  the  farming  and  growing  two — the  appren- 
tice and  the  day-laborer ;  in  the  intellectual  one — the 
student. 

The  farming  and  growing  apprentice  should  have  a 
good  common-school  education,  that  he  may  be  able  to 
read  understanding^  works  on  agriculture,  and  be  able 
,  to  find  out  the  best  implements  used,  the  best  grains 
known  for  profit,  the  composition  of  soils,  what  they 
require  to  raise  various  kinds  of  grain,  that  the  proper 
manures  may  be  applied.  He  should  know  the  most 
marketable  stock,  study  their  natures,  and  the  diseases 
to  which  they  are  liable,  and  be  able  to  know  what  dis- 
ease any  animal  has  by  inspection,  and  know  the  remedy. 
In  truth,  he  should  study  and  understand  all  that  can  be 
known  about  land  and  its  productions,  and  about  stock 
and  their  most  profitable  productions.  Then  if  the  land 
becomes  unproductive  he  will  know  what  remedy  should 
be  applied.  He  should  also  become  acquainted  with  the 
use  of  tools,  should  in  truth  have  a  set,  and  use  them,  for 
he  will  find  that  by  their  use  upon  a  farm  he  will  save 
and  make  many  a  dollar.  A  farmer  can  find  implements 
that  he  can  make  in  weather  when  he  cannot  work  out- 
doors, and  the  sum  total  of  their  value  in  the  course  of  a 
few  years  will  amount  to  a  large  sum.  In  fact,  to  be 
handy  with  tools  upon  a  farm  is  about  as  necessary  as  to 


120  How  to  make  Money. 

know  how  to  work  it,  provided  the  farmer  intends  making 
the  most  money  by  his  opportunity. 

"  But,"  says  the  farming  apprentice,  "  I  can  make  no 
money  ;  what  encouragement  is  there  for  me  ? " 

If  you  are  bound  out  to  the  farmer  till  you  are  twenty- 
one,  there  may  not  be  much  money  to  be  made  till  after 
that  time,  though  generally  the  apprentice  has  a  small 
set-out  at  the  end  of  his  time.  But  there  is  no  business 
which  does  not  require  knowledge  and  preparation  to 
carry  it  on  ;  and  in  this  respect  this  business  does  not 
differ  from  any  other.  Although  the  apprentice  is  not 
making  dollars  in  hand,  he  is  accumulating  a  capital  in 
knowledge  and  skill,  which  is  the  same  thing  in  another 
form,  and  will  bring  him  the  money  in  time.  In  case, 
however,  the  apprentice  is  not  bound,  but  receives  com- 
pensation, he  has  an  opportunity  to  make.  If,  then,  he 
commences  at  fifteen  years  of  age,  and  gets  ten  dollars  a 
month  on  the  average  till  he  is  twenty-one,  he  can  make 
some  money.  With  care  he  can  clothe  himself  and  have 
all  the  necessary  comforts  on  half  that  sum,  leaving  $60 
per  annum  as  the  net  earning.  This,  accumulated  and 
improved  at  seven  per  cent,  for  the  six  years,  will  amount 
to  the  neat  little  sum  of  $407  ;  enough  to  make  a  hand- 
some payment  on  a  farm  if  he  would  wish  to  do  so.  If, 
however,  he  would  wish  to  continue  to  hire  out,  and  if  he 
has  done  all  he  could  to  make  his  services  valuable  while 
an  apprentice,  he  can  get  $20  per  month,  if  not  more ; 
and  if  he  spends  half  his  wages  he  will  have,  if  he  con- 
tinues to  work  till  he  is  thirty-one  years  of  age,  at  the 
same  rate,  $2,484,  by  improving  his  $407  at  compound 
interest,  and  his  earnings  for  the  ten  years  at  seven  per 
cent. 

This   amount  will  buy  a  comfortable  farm,  and  the 


How  to  make  Money.  121 

apprentice  at  the  age  of  thirty-one  is  an  independent 
man ;  for  a  man  is  independent  who  owns  the  farm  he 
lives  on.  And  it  may  be  remarked  here  in  comparison 
that  not  one  in  one  hundred  has  this  amount  at  command 
earned  by  themselves  at  that  age.  And  if  this  young 
man  should  put  this  at  interest  at  seven  per  cent,  or  into 
a  farm  that  would  yearly  produce  this  amount,  he  will  find 
the  truth  of  the  comparison  ;  and  even  more  than  that, 
when  compared  with  men  at  the  age  of  say  seventy-one 
years.  For  he  will  see  by  the  tables  of  compound  interest 
that  this  sum  will  be  in  forty  years,  that  is  when  he  be- 
comes seventy-one  years  old,  $37,185.48;  and  if  in  the 
meantime  he  had  been  able  to  earn  one  dollar  a  day  off 
the  farm  as  his  profit,  and  improve  it  in  like  manner,  he 
would  make  in  cash  in  this  time  by  that  $65,621,  which, 
added  to  the  first  sum,  would  make  his  total  earning  to 
that  time  $102,806.48.  It  is  safe  to  say  there  is  not  one 
in  a  thousand  who  has  this  sum  at  that  age.  This  ex- 
ample is  given  to  show  the  farming  apprentice  that  his 
occupation  is  well  chosen  when  he  can  make  more  than 
nine  hundred  and  ninety-nine  in  one  thousand  of  the 
average  business  men,  besides  having  an  occupation 
highly  reputable  and  respectable,  and  entirely  independ- 
ent. This  branch  of  the  subject  is  further  continued 
under  the  chapter  of  "  Farming  and  Growing." 

The  mechanical  and  manufacturing  apprentice  takes 
in  a  wide  range  of  employment  in  those  businesses.  In 
these  the  system  of  binding  boys  out  for  a  given  term  is 
more  common  than  in  the  apprenticeship  at  farming. 
The  compensation  is  very  small,  but  the  chances  of 
learning  a  trade  at  which  good  wages  can  be  had  at  the 
end  of  the  apprenticeship,  make  such  positions  sought 
after  as  a  means  of  getting  a  living,  of  making  money, 


122  Hozv  to  make  Money. 

and  of  advancement,  to  become  principals  in  the  busi- 
ness. There  is  on  this  account  competition  to  gain 
places  as  apprentices,  for  they  are  sure  footholds  for  the 
future,  as  well  as  an  immediate  means  of  support. 

There  are  some  very  important  principles  which  apply 
equally  to  all  apprentices.  Each  should  understand  that 
he  has  a  future,  and  although  he  gets  his  living  and  a 
little  more  at  the  present,  his  hopes  of  higher  pay  and 
higher  place  lie  solely  in  the  future.  They,  in  truth, 
work  to-day  for  what  they  are  to  receive  for  to-morrow. 
In  what  way,  then,  are  they  to  secure  the  most  money  ? 
And  this  is  the  great  question.  They  will  see  at  once 
that  if  they  learn  nothing,  they  may  reasonably  expect 
to  get  no  more  than  they  do  as  an  apprentice.  If,  on 
the  other  hand,  they  make  themselves  good  tradesmen, 
they  will  get  good  tradesmen's  pay ;  and  as  the  trades- 
men's pay  varies  according  to  quality,  to  be  of  the  best 
quality  is  to  get  the  most  pay  possible  from  the  em- 
ployment. 

The  object,  then,  of  every  apprentice  should  be  to 
acquire  the  most  knowledge  and  the  most  skill  he  can, 
and  this  will  secure  him  the  most  money,  provided  he  has 
other  qualities  which  will  not  detract  from  his  ability  to 
get  the  price.  There  are  some  people  so  disagreeable  in 
their  manners,  and  make  those  around  them  so  uncom- 
fortable, that  they  do  not  get  employment  at  all.  Hence 
it  will  be  seen  that  such  qualities  will  lose  the  most 
skilled  mechanic  money,  and  the  reverse  if  he  possesses 
opposite  qualities  ;  they  make  money  for  him  because 
they  do  not  prevent  his  getting  the  real  value  of  his 
services.  The  apprentice,  then,  should  see  to  it  that  he 
does  not  destroy  the  value  of  his  prospects  by  bad  be- 
havior, ill  manners,  or  a  churlish  way ;  but  on  the  eon- 


How  to  make  Money.  123 

trary,  to  study  manners,  pleasant  and  agreeable  ways, 
endeavoring  to  make  all  with  whom  he  may  come  in 
contact  friendly  towards  him  and  personally  interested 
in  him.  Depend  upon  it,  he  will  make  money  as  fast  this 
way  as  by  the  knowledge  and  skill  he  is  acquiring  in  his 
trade. 

As  a  means  of  doing  this,  he  should  read,  study,  and 
acquire  general  knowledge  ;  make  solid  and  good  ac- 
quaintances, then  cultivate  them.  Never  lose  a  friend, 
if  possible  to  avoid  it ;  that  very  one  may  be  able  some 
day  to  throw  a  fortune  in  his  way.  Of  course  he  must 
always  have  a  higher  motive  than  the  mere  dollar  to  do 
this,  but  remember  that  to  neglect  it  may  land  him  in 
the  poor-house.  He  has  certain  ends  to  accomplish  in 
life ;  he  can  do  so  by  any  honorable  means.  His  gene- 
ral character,  as  he  develops  himself  in  life,  has  more  to 
do  with  success  than  he  may  imagine.  Spare  no  pains, 
young  man,  to  make  yourself  beloved  by  your  employer. 
You  take  many  turns  of  the  body  and  motions  of  the 
hands  to  do  your  day's  work ;  take  but  a  hundredth  part  as 
many  to  please  him  by  little  personal  attentions,  and  be 
assured  you  will,  in  the  end,  make  more  money  by  that 
than  by  your  labor.  Do  the  same  to  every  one  with  a 
good  feeling,  and  you  will  make  still  more. 

The  repetition  of  this  principle  so  often  may  tire  the 
reader,  but  it  matters  not ;  it  is  of  sufficient  importance 
to  be  repeated  on  every  page,  nor  even  then  would  its 
full  strength  be  told.  He  must  have  patience,  even 
though  the  story  be  in  "  line  upon  line,  precept  upon 
precept,  here  a  little  and  there  a  little."  It  may  tire,  so 
does  work  ;  but  still  work  must  be  done,  and  work  makes 
money. 

The  merchant  apprentice  has  a  wider  field,  with  more 


124  How  to  make  Money. 

numerous  opportunities  of  employment.  They  are  seldom 
bound  to  their  employer,  but  receive  a  small  compensa- 
tion at  first,  which  is  gradually  increased  as  their  ser- 
vices become  more  valuable.  The  compensation  is 
higher  than  in  either  of  the  former  named,  because  the 
expenses  are  in  like  manner  higher  from  necessity.  The 
business  to  be  done  is  of  a  different  nature,  requiring  a 
mode  of  living  and  dress  more  costly.  As  will  be  seen, 
it  would  scarce  be  a  money-making  operation  for  the 
merchant  to  place  behind  his  counter  a  young  man 
dressed  appropriately  as  a  mechanic  or  manufacturing 
apprentice  ;  or  as  a  farmer  working  the  fields.  The  one 
kind  of  clothing  is  abstractly  just  as  good  as  the  other ; 
there  might  be  money  made  by  the  one  kind  of  dress 
and  lost  by  the  other.  It  is  on  this  account  that  any 
difference  exists  between  the  prices  of  labor  in  one  de- 
partment of  trade  and  another,  where  knowledge,  skill, 
and  physical  ability  are  the  same  in  both. 

An  apprentice  cannot  be  worth  much  to  the  merchant 
without  he  is  incited  to  labor  from  a  consideration  of  his 
own  advantage,  advancement,  and  the  moral  obligation 
he  feels  himself  under  to  do  his  duty.  If  he  takes  no 
interest  in  the  inside  of  the  business  he  had  better'  be 
outside  altogether.  If  his  thoughts  and  feelings  are  else- 
where, his  employment  had  better  be  there  too.  In  order 
that  the  apprentice  shall  make  the  most  money  for  him- 
self and  his  employer,  his  mind  and  thoughts  should  be 
concentrated  upon  his  duties,  and  he  will  know  when  he 
is  doing  the  best  by  experiencing  a  high  pleasure  in  his 
occupation,  in  feeling  that  night  comes  too  soon,  and  the 
time  to  resume  in  the  morning  comes  i:oo  late.  If  he 
can  bring  about  these  feelings  his  success  is  certain. 

There  is,  too,  a  certain  something  about  the  conducl 


How  to  make  Money.  125 

of  the  apprentice  that  foretells  the  final  character.  As 
an  illustration  :  A  man  of  great  observation  and  a  clear 
scrutinizer  of  character,  was  one  day  in  a  hardware  store, 
and  saw  a  lad  trying  to  nail  up  a  box  of  goods.  He 
tugged  away  at  it  for  a  time,  never  minding  what  was 
passing  around  him.  He  had  nearly  completed  nailing 
on  the  cover,  when  the  nail  that  he  was  driving  flew  into 
a  pile  of  hinges  which  lay  on  the  floor  close  by.  The 
boy  stepped  to  the  pile,  looked  for  an  instant,  but  not 
seeing  the  nail,  stepped  back,  laid  down  his  hammer,  and 
deliberately  went  to  work  unpiling  the  hinges  to  get  the 
nail.  He  succeeded,  replaced  the  hinges,  then  drove  the 
nail  home  to  its  place,  muttering  to  himself  as  he  did  so, 
"  Served  me  right ;  I  shall  be  more  careful  next  time." 
The  gentleman  remarked  to  himself,  "  That  boy  will  be  a 
rich  man  if  he  lives.''  In  thirty  years  he  was  the  richest 
man  in  his  line  of  business  in  New  York. 

It  was  not  so  much  the  trifle  of  the  nail,  or  of  any  of 
the  attendant  circumstances,  that  led  the  gentleman  to 
conclude  what  he  did.  But  "  Straws  show  which  way  the 
wind  blows,"  and  as  a  converse  to  this  proposition  it 
might  be  added  that  the  wind  shows  what  way  straws 
will  go.  The  manner  in  which  a  thing  is  done  will  re- 
veal to  an  observing  eye  the  train  of  mind  which  guides 
it.  And  if  an  apprentice  is  seen  standing  around  in  a 
store,  where  there  are  always  a  hundred-and-one  things 
that  can  be  done  to  advantage,  with  his  hands  in  his 
pockets,  or  listlessly  leaning  upon  a  pile  of  goods,  or 
braced  up  against  a  door-post,  he  may  be  at  once  set 
down  as  having  no  special  thought  on  his  business.  The 
straw  shows  which  way  the  wind  blows  with  him.  If,  on 
the  other  hand,  he  is  restrained  from  universal  usefulness 
and  holds  back  from  doing  something  because  others  in 


126  How  to  make  Money. 

the  same  establishment  do  not  do  it,  he  is  a  straw,  and 
the  wind  will  show  which  way  he  will  go.  Others  of 
more  mature  age  and  higher  position,  would  do  Well  to 
reflect  whether  they  show  which  way  the  wind  blows,  or 
by  a  different  course,  pointing  which  way  the  aerial  cur- 
rent is  running. 

The  custom  in  this  country  is  such,  in  regard  to  mer- 
cantile apprentices,  that  it  is  difficult  to  say  at  what  ex- 
act point  this  time  ends  and  the  clerk  begins.  But  we 
must  content  ourselves  by  saying  that  the  apprentice 
must  be  regarded  as  quite  a  youth,  and  before  he  has 
attained  sufficient  knowledge  and  skill  to  enter  into  the 
body  of  the  business  in  the  way  of  aid — that  is,  before 
he  sells  or  takes  an  independent  department,  either  at 
the  books,  or  in  receiving,  or  shipping,  or  the  like.  In 
order  that  the  apprentice  may  know  that  what  services 
he  does  perform  will  all  be  paid  for  sooner  or  later,  he  is 
referred  to  the  case  of  the  two  salesmen  cited  in  the 
chapter,  Fountains  of  Wealth.  He  will  see  there  a 
parallel  to  his  own  case ;  and  if  he  does  not  get  the 
value  of  his  services  this  year,  he  is  laying  by  in  reserve 
his  earnings  for  another.  For  depend  upon  it,  the  im- 
mutable law  of  value  will  stand  in  his  case  as  it  does  in 
all  others. 

Cultivate  pleasant  manners — a  frank,  honest,  open 
face,  and  let  it  extend  to  the  heart.  Endeavor  to  impress 
every  man  with  whom  you  have  dealings  that  you  are 
fair  and  just.  Tricks  in  trade  are  carbuncles  and  cancers 
upon  the  face  of  your  success.  Men  will  be  as  much  afraid 
of  you  with  such  guide-boards  and  signs,  as  they  would 
be  of  the  things  themselves.  Nor  flatter  yourself  that 
your  tricks  will  not  be  found  out.  Whether  they  are  or 
are  not,  they  indicate  the  true  character,  and  the  cha- 


How  to  make  Money.  127 

rafter  will  show  for  itself.  The  character  is  just  at  this 
period  crystallizing — see  that  no  blemishes  are  imbedded 
in  it  for  all  to  look  at  who  touch  you  in  after  life.  A 
misstep  at  this  point,  or  a  small  dereliction  from  rectitude, 
widens,  to  be  greater  and  greater  the  further  in  life  you  go. 

If  you  are  sufficiently  unfortunate  to  fall  in  with  some 
house  who  has  a  specially  disagreeable  partner,  or  an 
under-man  who  has  the  confidence  of  the  principals  be- 
cause he  is  sufficiently  deceitful  to  accomplish  his  object: 
of  a  high  salary,  and  has  sufficient  acrimony  to  make 
himself  hated  by  every  one  else,  be  as  cautious  of  him 
as  you  would  be  of  a  robber.  If  he  judges  or  imagines 
that  your  talent  may  presently  or  remotely  come  in  col- 
lision with  his,  you  are  measurably  ruined.  You  would 
do  well  to  leave  at  once.  He  will  curdle  and  turn  to  gall 
in  the  mind  of  your  employer  every  act  you  may  do,  no 
matter  how  well  done.  If  he  finds  he  cannot  oust  you 
in  any  other  way  he  will  personally  insult  you,  relying 
upon  your  position  and  his  strength  to  accomplish  his 
end.  If  you  remain,  he  will  increase  his  efforts  till  he 
will  destroy,  by  annoyances  untold,  your  taste  for  busi- 
ness and  your  desire  to  please. 

Leave  at  once  ;  there  are  gentlemen  enough  to  serve. 
Such  yelping  curs  are  the  ignorant,  the  scum  which 
comes  up  from  below,  to  flourish  upon  the  solidities  of 
others  because  it  is  their  nature.  These  characters,  after 
a  while,  become  known,  and  the  refiner's  skimmer  con- 
signs them  to  their  proper  element.  But  they  have 
lived  long  enough,  possibly,  to  damage  you.  But  be  on 
your  guard  for  such  obstacles  in  the  way  of  your  success, 
and  let  no  considerations  temr3t  you  to  intrust  your 
future  fortunes  and  the  formation  of  your  mercantile 
character  to  such  a  deformity.     Look  well  to  the  charac- 

6 


128  Hozv  to  make  Money. 

ter  of  those  with  whom  you  are  to  associate  yourself, 
and  be  not  over  anxious  to  get  a  place  if  you  cannot  do 
so  among  honorable  merchants  and  high-minded  gentle- 
men. There  are  very  few  cases  such  as  has  been  named, 
and  many  which  are  everything  to  be  desired. 

The  student  apprentice,  like  all  the  others  named,  is 
laboring  to  acquire  skill  and  knowledge  of  his  intended 
profession  for  like  purposes.  What  has  been  said  of 
other  young  men  of  your  age  under  this  head,  in  many 
respects,  will  also  apply  to  your  own  case  and  to  your 
prospects  in  life.  Every  day  brings  its  opportunity  to 
acquire  knowledge,  and  when  the  day  is  gone  that  op- 
portunity is  gone  also.  If  the  young  could  only  be 
placed  at  the  stand-point  of  experience  in  after  life,  and 
look  back  upon  the  space  now  under  treatment,  how 
differently  they  would  view  their  opportunities.  All  are 
striving  for  a  living,  and  more  ;  and  while  they  commence 
life  with  strife,  and  end  it  generally  in  like  manner,  the 
object  for  which  they  are  all  laboring  is  caught  in  one 
hand  and  cast  away  by  the  other,  in  ninety-nine  cases  in 
a  hundred.  Is  it  not  then  worth  while  for  the  young 
apprentice  to  obtain  some  knowledge,  among  his  other 
acquirements,  how  he  can  do  better  in  the  world  than  one 
in  a  hundred  ?  He  studies  everything  to  know  how  to  get 
money  ;  in  other  words,  how  to  get  the  knowledge  by 
which  he  can  get  money.  Has  he  ever  studied  how  to 
get  the  most  with  the  knowledge  he  has  acquired,  and 
the  nature  of  the  thing  itself — the  reasons  why  it  will 
not  stay  with  him,  and  why,  after  doing  all  that  intellect 
and  perseverance  could  accomplish,  he  is  still  left  on  the 
down-hill  side  of  life,  with  just  these  in  full  action,  and 
cannot  point  to  a  single  day's  labor  accumulated  as  the 
evidence  of  what  he  has  done  ? 


How  to  make  Money.  129 


CHAPTER   IX. 

CLERKS. 

Important  class. — How  regarded. — Compared. — His  latitude  and 
longitude. — Large  chance. — Solid  question. — Rule  for  success. — 
Always  a  market. — Examples. — Spending  don't  increase  value. 
— Habits.  —  Bad  loses  money. — Good  makes.  —  Confidence 
gained. — Reputation.  — Character. —  Not  trustworthy.  —  Loose 
life,  loose  morals. — Blocks  advancement. — Money  loss. — Choice 
of  cashier. — Good  habits  make  money. — Justice  cited. — Splendid 
honors. — Selection  of  position. — Reasoning  a  priori. — Nothing 
saved  as  clerk,  nothing  as  principal. — Makes  profit  and  can 
again. — Double  way  of  making  money. — Associates,  friends,  or 
enemies. — Too  expensive.  —  Conventionalities  of  life. — Who 
helps  you. — Who  clings  a  dead  weight. — Who  will  you  please. — 
Singular  infatuation. — Money  spent  to  please  others. — Great 
point. — Choose  for  yourself. — Consider  chances. — Two  means. 
— Polite,  affable,  pleasant.  —  Great  question.  —  Which  offers 
most. —  Calculation. —  Clerk  makes  $251,318.  —  Compared. — 
Ambition.  —  Business  for  himself.  —  Close  calculations. — Be 
modest.  —  Mind  your  business.  —  Make  friends.  —  Pleasant 
smiles. — Agreeable  news. — Costs  nothing. — Makes  money. 

Clerks  form  an  important  class  auxiliary  to  the  carry- 
ing on  the  various  departments  of  business.  Some  make 
it  a  profession  for  life,  aspire  to  nothing  further  than  the 
pecuniary  value  of  their  services,  and  are  satisfied  with 
what  that  may  yield ;  others  regard  it  as  a  species  of 
servitude  out  of  which  they  hope  to  emerge  to  be  prin- 
cipals, in  the  hope  of  securing  larger  remuneration. 
Such  ambition  is  laudable,  and  is  well  in  itself;  but  it  is 
quite  certain  that  clerkships  can  be  so  managed  finan- 
cially as  to  result  in  an  independence  to  every  one  and  a 
fortune  to  some,  while  the  management  of  a  business  on 


130  How  to  make  Money. 

their  own  account  in  nineteen  cases  out  of  twenty,  if  not  a 
larger  proportion,  will  result  in  neither.  One  has  but  to 
look  at  the  statistics  of  success  in  mercantile  business  to 
prove  this  ;  though  all  the  statistics  in  the  world  would  not 
prevent  the  ambitious  young  man  from  making  the  usual 
effort  to  acquire  a  sudden  fortune.  This  being  human 
nature  we  must  take  it  as  it  is,  and  endeavor  to  show 
such  the  means  of  making  the  most  money  while  clerks, 
and  the  way  to  accomplish  their  ambition  by  the  safest 
path,  and  then  to  point  out  the  hidden  rocks  in  their 
channel  of  life  discovered  by  previous  wrecked  mariners, 
freighted  alike  with  ambitions  and  hopes,  which  have 
long  since  sunk  into  poverty  and  distress. 

But  let  any  clerk  on  a  fair  salary,  take  his  latitude  and 
longitude  in  life,  and  refer  himself  to  the  co-ordinates  of 
comfort  and  happiness  enjoyed  by  principals,  or  even 
men  of  fortune.  If  the  reference  be  made  candidly, 
soberly,  and  with  common-sense  judgment,  he  will  dis- 
cover that  his  individuality  is  perfect,  and  that  his  chance 
of  making  an  independence  is  greater  than  that  of  the 
average  of  business  men  who  operate  on  their  own 
account,  if  not  greater  than  theirs,  in  time,  to  make  a 
fortune.  Not  only  that,  but  in  the  meantime  he  will,  if 
he  is  philosophic,  take  as  much  comfort  in  life,  if  not 
more,  than  those  who  are  in  the  way  of  making  largely, 
with  the  constant  danger  before  them  of  losing  all. 

So  that  clerking,  if  rightly  considered,  is  not  only  re- 
spectable, but,  considered  in  all  the  relations  of  life,  honor- 
able and  profitable.  Then  the  solid  question  arises, 
How  can  the  most  money  be  made  out  of  the  situation  ? 
The  answer  to  this  question  can  easily  be  given,  and  it 
only  remains  for  such  individual  to  make  practical  use 
of  the  information,  which  may  or  may  not  be  new  to  him. 


How  to  make  Money.  131 

Your  business,  then,  being  to  assist  others  to  cany  for- 
ward their  plans  and  operations  for  a  certain  amount  of 
compensation,  two  consequences  result :  "  What  amount 
of  assistance  am  I  to  give  for  the  compensation  ? "  and, 
"  Will  the  compensation  be  equal  to  what  I  do  ? " 

Every  business  man  who  pays  the  market  value  for 
the  commodities  he  purchases,  will  in  like  manner  find 
that  he  will  be  compelled  to  pay  for  the  value  of  these 
services  by  the  same  rule ;  if  he  does  not,  some  one  else 
will ;  and  hence  follows  the  rule,  which  is  inevitable  : 
That  services,  like  any  other  commodity,  command  in  mar- 
ket their  true  value ;  so  that  the  clerk  has  but  one  prin- 
ciple to  act  on — to  get  the  most  money  out  of  his  situation. 
This  constitutes  the  whole  range  of  his  business  life,  so 
far  as  getting  money  is  concerned,  if  he  determines  to 
remain  a  clerk. 

Many  in  this  line  do  not  know  in  what  consists  such 
value,  and  if  they  do,  neglect  to  use  the  information  for 
their  own  benefit,  and  possibly  do  not  know  how  to  pro- 
ceed to  accomplish  the  object  if  they  know  the  fact.  But 
one  thing  may  be  assumed  as  true,  that  there  is  so  much 
demand  for  such  valuable  services,  that  the  moment  they 
can  be  ascertained  they  always  find  a  ready  purchaser. 
One  example  of  this  kind  is  cited  on  page  29  to  explain 
that  in  this  lies  the  fountain  of  wealth  to  the  clerk. 
As  will  be  seen  by  that  case,  the  one  was  doing  no  more 
than  the  other  apparently,  and  each  receiving  the  same 
amount  of  money ;  the  value  of  the  services  of  the  one 
became  nearly  twice  as  valuable  as  the  other ;  although 
one  spent  all  his  income  while  the  other  spent  only  one- 
third.  From  this  it  will  be  seen  that  spending  money 
does  not  necessarily  secure  increased  income,  but  on  the 
contrary  almost  certainly  decreases  it   proportionately 


132  How  to  make  Money. 

with  those  who  are  saving.  Here,  then,  is  a  good  lesson 
how  to  make  saving  valuable  ;  and  this  brings  us  to  a  very 
important  feature  in  this  matter. 

Habits  of  living,  as  well  as  habits  of  life,  generally  have 
a  strong  bearing  upon  the  appreciation  in  which  the 
clerk  is  held  by  the  employer,  and  the  confidence  he  can 
feel  in  him,  and  the  security  of  trusting  important  mat- 
ters to  his  care.  So  that  the  more  loose  habits  a  clerk 
has  the  less  he  will  be  trusted,  and  his  services  will  of 
course  be  less  valuable  ;  the  fewer  he  has,  the  more  as  a 
general  rule  he  can  be  trusted,  and  the  more  valuable 
will  be  his  services.  It  may  seem  of  little  or  no  conse- 
quence to  a  young  man  who  is  a  clerk  to  be  seen  indulg- 
ing in  drink,  in  cigars,  in  billiards,  or  in  debauching  of 
any  kind,  but  the  point  is  not  as  to  the  particular  drink, 
cigar,  game  of  billiards,  or  a  given  debauch  ;  these  will 
probably  not  hurt  him,  nor  may  it  lose  him  more  money 
than  the  simple  cost,  which  may  be  a  trifle,  but  it  is  the 
character  which  the  repetition  of  doing  such  things  im- 
plants upon  the  clerk,  making  him  liable,  if  he  is  human, 
to  do  worse. 

No  wise  man  in  business  would  intrust  such  a  clerk 
with  his  heavy  interests,  although  there  are  thousands 
who  do  just  these  things  that  are  as  honest  as  the  sun 
to  rise,  and  could  be  trusted  with  untold  millions.  No 
one  will  deny  that  a  loose  course  of  life  makes  loose 
morals,  and  no  one  can  say  when  the  effects  will  take 
place.  Nor  is  it  intended  here  to  preach  a  sermon  on 
morals,  but  to  open  the  eyes  of  some  who  complain  of 
fortune,  when  they  themselves  have  blocked  her  wheels 
by  such  as  they  supposed  innocent  and  comparatively 
inexpensive  amusements.  They  may  never  have  cast  a 
thought  that  these  things  have  retarded  promotion,  ad- 


How  to  make  Money.  *      133 

vancement,  or  high  salaries,  but  probably  have  blamed 
their  employers  for  being  mean  and  close-ns,ted,  and  even 
unjust,  by  giving  to  others  what  they  supposed  belonged 
to  them. 

There  is  a  positive  money-loss  in  all  these  things,  and 
it  is  not  alone  confined  to  the  clerk.  If,  then,  the  ques- 
tion be  brought  home  to  the  clerk  himself,  he  will  see  the 
force  and  truth  of  the  position.  You  are  the  president 
of  a  bank,  or  a  large  private  banker,  or  a  large  wholesale 
or  retail  dealer,  and  if  you  wanted  a  cashier  with  a  salary 
say  of  $5,000  per  annum,  would  you  select  one  with  the 
habits  named  ?  Though  he  might  be  as  quick  as  light- 
ning, smart  as  the  smartest,  and  as  accurate  as  a  multi- 
plication table,  it  is  easy  to  tell  what  you  would  do  if  you 
were  a  man  of  sense,  though  you  might  have  just  those 
habits  yourself. 

An  instance  can  be  cited.  A  young  man  now  in  busi- 
ness (1867)  was  a  clerk,  and  he  had  decided  to  enter  busi- 
ness on  his  own  account.  He  had  never  tasted  a  glass  of 
liquor,  smoked  a  cigar,  or  been  addicted  to  the  ordinary 
habits  of  young  men.  He  had  been  in  business  but  a 
short  time  when  a  friend  of  his  had  a  son  whom  he 
wished  to  place  in  business  ;  and  such  was  his  confidence 
in  this  young  man,  from  his  general  character,  that  he 
gave  his  son  $350,000  in  cash,  as  capital,  to  join  the  young 
man,  and  the  concern  is  to-day  doing  a  splendid  business 
on  strictly  business  principles.  Whether  the  young  man 
is  any  better  or  more  capable  than  others  addicted  to 
such  habits  is  not  the  question  to  be  decided  here ;  the 
only  question  is  whether  such  a  characler  inspires  more 
confidence  than  the  other,  and  whether  it  would  command 
more  money,  out  of  which  to  make  money,  than  the  other 
all  other  things  being  equal. 


134  How  to  make  Motiey. 

If  these  propositions  are  true,  and  it  is  believed  they 
cannot  be  denied,  then  high  moral  character,  free  from 
what  is  called  bad  habits,  is  worth  money  to  the  possessor, 
and  hence  money  is  macle  through  such  means,  and 
directly  too. 

There  is  another  question  which  bears  very  strongly 
on  the  ability  of  a  clerk  to  either  become  a  partner  of  the 
house  he  is  in,  or  be  selected  as  the  managing  man  for 
capital  in  a  new  one,  or  which  will  affect  his  credit  start- 
ing on  his  own  account.  If  he  has  spent  all  his  salary  as 
a  clerk,  why  would  he  change  from  spending  all  his  profits 
when  in  business  on  his  own  account  ?  Reasoning  d 
priori  he  would.  Will  such  a  reputation  secure  him  what 
he  wants  and  needs  ?  Probably  not.  But  if,  on  the 
other  hand,  he  has  shown  himself  competent  to  manage 
his  little  mercantile  affairs  as  a  clerk  to  advantage,  that  is 
to  a  profit,  and  has  saved,  is  it  not  good  reasoning  to 
suppose  he  would  do  a  larger  business  well  als.o  ?  , 

In  other  words,  would  you  select  one  to  make  profit 
who  never  had  done  it  ?  Would  you  give  as  much  for  a 
man  to  help  you  make  profits  who  had  never  made  a 
dollar  of  profit  in  his  life,  as  you  would  to  the  one  who 
had  made  profit  by  business,  although  the  business  was 
small  ?  The  proposition  is  self-evident ;  and  hence  de- 
duce that  the  clerk  who  has  saved  of  his  earnings  is 
worth  more,  and  will  bring  a  higher  price  in  the  market 
than  he  who  has  not.  For  if  a  clerk1  cannot  take  care 
and  nurse  his  own,  he  is  certainly  not  so  well  calculated 
to  take  care  of  another's  as  he  who  can  and  does. 

This  course  of  economy  and  saving  is  a  double  way 
of  making  money.  First  you  make  it  out  of  your  own 
little  business  as  clerk,  and  then  you  increase  the  value 
of  your  services  by  showing  your  capability  to  do  just 


Hozv  to  make  Money.  135 

that  which  is  the  object  of  all  business,  namely,  to  make 
profit  by  business.  How,  then,  can  the  clerk  expect 
advancement,  either  to  become  a  principal  or  have  his 
pay  increased,  without  these  things  are  studied  and  at- 
tended to.  Can  we  not  see  in  this  principle  why  so 
many  merchants  fail  in  business  ? 

These  habits  and  failings  to  save  are  mainly  attribu- 
table to  what  you  call  your  friends  and  associates.  If 
you  will  examine  yourself,  you  will  find  that  naturally 
you  are  averse  to  almost  everything  you  do  in  this  way, 
or  if  not  now,  there  was  a  time  when  you  were.  Who  has 
given  you  a  taste  for  them,  or  if  not  a  taste,  who  has  in- 
duced you  to  indulge  in  them  ?  The  answer  is  simple — 
your  associates.  Then,  is  it  not  worth  your  while  to 
consider  whether  such  associates,  although  they  are 
agreeable  and  pleasant,  are  not  too  expensive  to  you  ?  In 
other  words,  can  you  afford  so  much  money  for  just  the 
pleasure  of  this  society,  or  rather  the  difference  between 
such  society  and  that  which  might  be  equally  agreeable 
but  not  so  expensive  ? 

The  great  trouble  in  all  these  matters,  arises  from  the 
constraints  which  the  conventionalities  of  life  throw 
around  the  rising  generation.  They  must  do  as  every- 
body else  does,  or  they  will  be  pointed  at.  This  point- 
ing will  do  no  harm  to  any  one,  not  even  to  his  own 
feelings,  if  he  looks  at  it  in  the  right  light.  Will  it 
reduce  the  salary  of  the  clerk,  or  will  it  tend  to  increase 
it  ?  Will  it  prevent  his  advancement,  or  will  it  accele- 
rate it  ?  It  will  not  rob  him  of  a  cent,  but  will  put 
dollars  in  his  pocket.  What  motive,  then,  has  he  to 
please  those  who  are  thus  sapping  the  very  foundations 
of  his  wealth  and  future  advancement  ?  Will  they  pay 
your  bills  ?     Will  they  give  you  a  dollar  ?     Can  they  ? 

6* 


136  How  to%  make  Money. 

No ;  they  are  powerless  to  be  a  benefit  to  you,  and  clir.g 
a  dead  weight  upon  your  prosperity. 

Then,  who  are  your  friends,  and  who  your  real  enemies  ? 
Those  who  do  not  point  at  you,  but  approve  of  your 
simple  habits  and  saving  ways  ;  can  and  will  aid  you  with 
money  to' make  money,  and  with  advancement;  while 
those  who  do  point  will  do  neither  for  you,  and  will  be 
well  satisfied  if  they  can  hold  you  up  to  ridicule.  Will 
you,  then,  please  your  friends  or  your  enemies  ?  This  is 
the  great  question,  and  in  its  answer  lie  success  and 
happiness,  or  failure,  want,  poverty,  and  distress. 

There  is  a  singular  infatuation  about  doing  as  others 
do,  but  the  philosophy  of  the  thing  is  seldom  thought  of. 
Money  is  generally  spent  more  to  please  others  than  our- 
selves. Those  then  who  have  the  independence  to  make 
themselves  the  standard,  instead  of  bowing  to  the  stand- 
ard of  another,  have  achieved  a  great  point  in  money- 
making,  in  being  respectable,  in  being  comfortable,  happy, 
and  prosperous.  Assuming,  then,  that  the  clerk  has 
sufficient  independence  to  choose  his  associates,  to  live 
to  gratify  himself  instead  of  others,  to  make  money  in- 
stead of  squandering  where  nothing  substantial  is  re- 
turned, to  cater  for  his  own  advancement  instead  of  for 
those  who  are  a  dead-lock  in  his  way,  has  one  of  two 
things  to  choose  for  himself — whether  he  will  make  clerk- 
ing his  aim  in  life,  or  whether  he  will  use  that  position 
as  a  stepping-stone  for  entering  business  on  his  own 
account. 

By  reference  to  the  tables  of  earning,  and  an  intelligent 
consideration  of  the  chances  of  success  in  mercantile  life 
from  the  statistics  which  have  been  given  heretofore,  the 
clerk  can  determine  as  to  his  future  destiny,  or  rather, 
which  he  will  choose. 


How  to  make  Money.  137 

If  you  determine  the  first  course,  you  have  only  to 
make  your  services  of  the  greatest  possible  value.  This 
is  accomplished  by  two  means : 

First.  By  a  thorough  knowledge  of  your  business. 

Second.  By  establishing  a  character  for  honesty  and 
trustworthiness. 

You  will  then  be  able  to  procure  what  your  services 
are  worth  by  being  affable,  polite,  pleasant,  agreeable, 
social,  and  attractive  to  all  with  whom  you  come  in  con- 
tact. Under  all  the  circumstances  of  comfort,  taking  a 
solid  view  of  life,  and  the  chances  of  that  terrible  con- 
dition of  want  after  plenty,  which  so  many  merchants  and 
principals  in  other  businesses  experience  as  a  reward  for 
years  of  toil,  it  is  doubtful  whether  the  clerkship  does  not 
present  more  attraction  in  the  long  run  than  entering  busi- 
ness as  a  principal.  Let  us  examine  the  matter  a  little. 
Suppose  we  assume  an  instance  of  one  who  receives  the 
following  rates  till  he  is  sixty  years  of  age,  and  see  what 
the  result  is,  compared  with  the  average  of  success  by 
merchants  : 

From  1 5  to  20  years,  average,     ....  $500. 

From  20  to  25     "  "         $1,200. 

From  25  to  30     "  "  ....       $1,800. 

From  30  to  40     "  "         $2,500. 

From  40  to  50     "  "  ....       $3,500. 

From  50  to  60     "  "         $5,ooo. 

Now  suppose  he  spends  one-half  of  his  salary  each 
year.  By  the  tables  he  will  have  at  sixty  years  of  age 
$251,318,  compounding  and  improving  savings  at  seven 
per  cent.  How  many  large  merchants  have  this  at  that 
age,  and  how  many  have  less,  and  how  many  have 
nothing ! 

If,  however,  the  clerk  is  determined  to  try  his  luck  in 


138  How  to  make  Money. 

business  on  his  own  account,  he  can  have  no  surer  gua- 
rantee of  success  than  by  first  making  his  own  capital  at 
clerking.  This  is  achieved  by  making  his  services  valu- 
able, and  then  saving  till  he  may  have  sufficient  to  start 
on.  A  small  capital,  well  managed,  will  make  more 
money  than  more,  on  which  you  are  bound  to  pay  inte- 
rest. To  decide  this  question  of  advantage  a  series  of 
close  calculations  is  to  be  entered  into  of  the  expenses 
of  your  concern,  such  as  store-rent,  clerk-hire,  losses,  and 
other  current  expenses,  and  good  judgment  required  to 
see  what  will  make  the  most  according  to  all  the  chances. 
Then  to  accomplish  your  object  dress  neatly,  so  as  not  to 
be  remarked  either  way.  Be  modest,  unassuming,  never 
boast  of  what  you  are  doing,  of  your  profits,  or  your 
business,  or  what  you  intend  to  do.  Mind  your  own 
affairs,  and  let  others  alone.  Make  friends  with  all  by 
your  pleasant  smiles  and  agreeable  words ;  they  cost 
nothing,  and  make  much  money. 


How  to  make  Mon^y.  139 


CHAPTER  X. 


FARMING   AND    GROWING. 

Good  business. — Steady  increase. — Large  or  small  scale. — Different 
names. — Ordinary  farming. — How  to  pay  for  a  farm. — Small 
daily  earnings. — Buy  and  work. — Your  capital. — Keep  ac- 
counts.— Inventories. — Earnings  and  loss. — One  hundred  dol- 
lars profit. — Big  result. — Very  fine. — Get  a  wife. — Common 
sense. — No  nabob. — Prince  of  the  realm. — Imitate  me. — Man 
of  independence. — First  cut. — Value  your  property. — Making  or 
losing. — Questions. — What  kind  of  things. — Simple  merchant. 
— Everything  should  pay. — Losing  money. — Earn  their  living. — 
Produce  must.  —  Others',  not  your  own  taste.  —  Routine  farm 
ing. — Stocks  in  fashion  compared. — Costs  same  to  keep  poor  as 
good. — Example. — Great  gain  in  good. — Make  largely  by  good 
stock. — Sell,  and  buy  half. — Increase  good  stock. — Sell  poor- 
est, keep  best. — Breed  from  best. — Poor  grade. — Damage  to 
implements. — Large  sum  in  time. — They  pay  for  farm. — Stitch 
in  time. — Illustration. — Little  thing  great  damage. — Expense  a 
moth. — Rats  in  granary. — Pick  up. — Hang  up. — Like  retail 
merchandizing. — Relative  comparison. — Tables  of  earnings. — 
Calculate  and  understand.  —  Inducements. — Independence. — 
Happiness. 

With  good  health  and  bodily  strength  no  employment 
gives  a  more  sure  result  for  a  comfortable  living  than 
that  of  the  farmer  or  grower.  Like  the  capitalist  with 
his  money  at  interest,  growth  and  increase  march 
steadily  on  through  day  and  night.  The  grain,  the 
grass,  the  herds,  and  the  fruits,  respond  to  the  toil  of  the 
husbandman,  and  furnish  a  rich  reward  for  his  industry. 
On  the  large  or  small  scale  in  which  these  are  carried 
forward   depend   the   results,  whether   much    or    little. 


140  How  to  make  Money. 

But  whatever  the  scale  may  be,  under  ordinary  circum- 
stances a  profitable  harvest  is  gathered. 

Farming,  by  which  term  is  meant  the  working  of  from 
sixty  to  two  hundred  acres  of  land  to  produce  the  ordi- 
nary crops  of  the  country,  is  carried  on  in  about  one 
style,  and  varies  but  little  in  its  general  features.  There 
are,  however,  grazing  farms,  as  they  are  called,  of  larger 
size  ;  and  in  the  western  and  southern  portions  of  the 
country,  still  larger  bodies  of  land  under  one  control, 
where,  in  some  cases,  universal  crops  are  raised,  while 
in  others,  sugar,  cotton,  and  rice  are  produced.  These 
latter  are  called  plantations.  They  are  all,  however, 
farms,  and  the  terms  used  are  more  to  indicate  the  kind 
of  farming  than  for  any  other  object. 

We  will  speak  first  of  the  most  numerous  and  the 
most  important  branch — that  of  the  ordinary  farming. 
The  amount  of  money  to  be  made  from  this  is  more 
fixed  in  amount,  and  the  profit  depends  mainly  upon  the 
economy  with  which  it  is  conducted.  As  every  one 
knows,  there  is  no  such  thing  as  making  a  princely  for- 
tune from  an  ordinary  farm.  But  with  proper  manage- 
ment and  a  just  economy,  money  can  be  made  here  as  well 
as  in  any  other  branch  of  business.  From  farming  at  large 
all  the  national  wealth  proceeds,  directly  or  indirectly. 

The  independence  of  the  farmer  consists  in  having  his 
farm  paid  for  and  being  out  of  debt,  for  with  this  a  liv- 
ing can  always  be  had,  and  a  good  one,  too.  How  is 
this  to  be  accomplished  ?  The  quickest  way,  is  to  make 
the  most  money  off  the  land  in  the  least  possible  time. 
Suppose  your  farm  is  to  cost  $2,000,  how  much  have  you 
to  make  each  working  day  to  pay  for  it  ?  If  you  make 
a  payment  each  six  months,  you  will  do  the  same  as  im- 
proving your  earnings,  at  seven  per  cent,  as  most  farms 


How  to  make  Money.  141 

arc  bought  and  sold  on  interest.  Look  at  the  tables  of 
earnings  and  you  will  see  that  if  you  make  $5  per  day 
for  one  year,  you  will  have  $1,992.39.  If  you  make  $1 
a  day  for  five  years,  you  will  have  $1,835.96.  If  you 
make  50  cents  a  day  for  ten  years,  you  will  have 
$2,212.89.  If  you  make  25  cents  a  day  for  fifteen  years, 
you  will  have  $2,018,  and  so  on.  Now,  what  does  this 
show  ?  That  the  small  earning  of  twenty-five  cents  a 
day,  for  three  hundred  and  thirteen  working  days,  will 
make  $78.25  per  annum  to  be  saved  to  pay  for  your  farm, 
besides  the  interest  on  the  first  amount  or  sum  agreed  to 
be  paid.  It  then  becomes  a  serious  and  close  question 
for  any  one  wishing  to  purchase  a  farm,  if  he  has  not 
the  money,  to  decide  upon  the  best  way  to  procure  it. 

Let  us  look  at  this  matter.  If  you  conclude  to  make 
the  effort  in  five  years,  you  will  have  to  make  yearly,  on 
your  farm,  $453  clear.  Forty-five  cents  per  day  for  in- 
terest, and  $1  a  day,  or  $313  in  savings,  that  is,  $1.45  per 
day  for  the  first  year.  The  interest  would  be  $21.91  less 
the  second  year,  and  so  on  to  the  last.  Now,  if  you  work 
without  the  farm,  at  any  other  business,  you  will  have  to 
make  $313  per  year,  and  improve  the  earnings  each  six 
months  at  seven  per  cent.  So  it  will  be  seen  that  your 
farm  costs  you,  by  laboring  on  it  instead  of  working  at 
another  business  to  pay  for  it,  forty-five  cents  per  day. 
But  it  must  be  remembered  that  there  are  expenses  for 
tools,  etc.,  in  addition  ;  but  these  are  accumulated  capital, 
are  valuable ;  and  such  may  be  considered  so  much 
additional  earnings. 

It  is  clear,  from  this  statement,  that  if  you  intend  to  have 
a  farm,  you  should  buy  one,  and  work  on  it,  instead  of  work- 
ing at  another  business,  to  make  money  to  pay  for  it.  For 
it  is  plain  to  see  that  your  farm  is  cheap,  under  your 


142  How  to  make  Money. 

own  supervision,  at  forty-five  cents  per  day.  Then,  if 
you  have  the  money  to  pay  for  the  farm,  and  do  pay  for 
it,  see  that  it  not  only  does  as  much  for  you  as  it  did  fof 
the  former  owner ;  that  is,  that  it  should  first  pay  you 
the  interest  on  the  capital,  #140,  but  that  it  pays  you  as 
much,  in  addition,  as  you  would  have  paid  down  yearly, 
if  you  had  paid  in  that  way,  besides  getting  your  living 
off  of  it.  If  this  is  not  done,  depend  upon  it,  there  is  a 
screw  loose  somewhere,  and  you  are  losing  instead  of 
making  money.  In  other  words,  you  must  have  at  the 
end  of  the  year  $453  in  valuable  property,  more  than 
you  had  at  the  beginning  of  it,  or  you  are  not  doing  as 
well  as  you  would  be  working  to  pay  for  it  otherwise. 

The  natural  question  which  the  farmer  would  ask,  is, 
How  is  this  to  be  ascertained  ?  For,  generally,  a  farmer 
keeps  no  accounts,  and  only  knows  what  his  debts  are. 
No  farmer  knows  whether  he  is  making  money  or  not 
if  he  does  not  keep  an  accurate  accoufit  of  everything, 
and,  like  the  merchant,  take  an  inventory  on  the  first  of 
January  of  each  year,  of  what  he  has  got  and  what  he 
owes.  The  way  the  business  is  generally  done,  the  only 
wonder  is  that  he  makes  at  all.  As  far  as  can  be 
judged,  there  is  no  business  so  loosely  carried  on  as  that 
of  farmers,  from  the  fact  that  they  are  generally  igno- 
rant of  the  close,  drawn-up  way  in  which  all  business 
accounts  should  be  kept ;  that  they  run  on  from  year  to 
year  not  really  knowing  whether  they  have  made  or  not. 

An  example  of  inventories  is  given  on  next  page. 
From  these  inventories  it  is  seen  that  the  farmer  made 
in  the  year  1864  the  sum  of  $835.97— that  is,  he  made 
by  his  farm,  over  and  above  his  interest  on  capital,  and 
services  in  any  other  business,  the  sum  of  $282.97.  In 
1865  he  made  $759.95 — that  is,  the  sum  of  $144.95  more 


Hozv  to  make  Money. 

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144  How  to  make  Money. 

than  the  interest  on  capital,  #140,  and  $475,  the  ser- 
vices of  himself  and  son  ;  or,  in  other  words,  he  made 
by  his/arm,  $144.95.  In  1866  he  made  $482.50,  and  fell 
short  $132.50  of  making  the  value  of  Jciis  own  services 
and  that  of  his  son's,  and  the  interest  on  his  capital. 
His  farm  did  not  pay  for  itself  that  year  by  $7.50,  and 
no  profit  was  made  from  it.  Such  bad  years  will  occur 
on  any  farm,  or  in  any  other  business,  no  matter  what  it 
may  be. 

Let  us  suppose,'  then,  that  he  averages  from  his  farm 
alone  $200  per  annum  ;  that  he  makes  his  interest,  $140, 
and  his  own  services,  $313  ;  if  he  does,  he  is  doing  a 
splendid  business,  for  his  income  is  then,  in  total,  $653. 
Now  look  at  the  table  of  earnings ;  at  this  rate  he  is  earn- 
ing $2.09  per  working  day.  This  sum,  accumulated  at 
seven  per  cent.,  will  yield  in  five  years  $3,807.17  ;  in  ten 
years,  $9,250.86;  in  fifteen  years,  $16,887;  m  twenty 
years,  $27,655  ;  in  twenty-five  years,  $42,847;  in  thirty 
years,  $64,277;  in  forty  years,  $137,148;  in  fifty  years, 
$282,126  !     Can  a  farmer  make  money  ? 

"  Well,"  says  the  farmer,  "  this  is  all  very  nice ;  very 
fine  ;  but  how  can  this  be  done  ? "  We  propose  to  tell 
you,  and  if  you  have  average  crops,  and  follow  directions, 
you  will  not  only  do  this,  but  more.  We  will  tell  you, 
too,  under  the  head  of  "  How  to  make  money  make 
money,  and  how  to  keep  it,"  how  to  invest  it,  so  that 
the  results  stated  shall  be  obtained.  But  first  of  all  you 
must  have  a  wife,  and  both  of  you  must  have  what  is 
called  "good  common  sense,"  and  know  what  you  are 
about.  If^you  are  not  up  to  this  standard,  you  had  better 
get  your  living  the  best  way  you  can,  and  be  satisfied 
with  what  you  can  get.  But  if  you  have  strength  of 
mind  enough  to  know  that  you  are  a  farmer,  that  you 


How  to  make  Money.  145 

must  dress,  spend,  and  act  like  a  farmer,  you  have  made 
a  good  start.  That  you  will  not  dress,  spend,  and  acl: 
like  or  play  the  nabob  till  you  have  the  money  to  play  it 
on,  is  one  more  step  in  the  right  direction.  If  you  will 
say  to  yourself,  "lama  prince  of  the  realm,  and  hold  in 
my  hands  the  elements  of  our  nation's  wealth  ;  so  let 
others  imitate  me,  if  they  wish,  not  I  them,"  you  have 
said  true  words,  and  have  a  just  appreciation  of  your 
position. 

The  farmer  owning  his  own  land,  and  out  of  debt,  is 
the  true  man  of  independence.  No  one  can  say  to  him, 
go  here,  or  go  there.  He  eats  the  first  cut,  the  country 
at  large  is  served  to  the  secftnd ;  he  walks  upon  his  acres, 
and  no  man  can  dispute ;  he  sleeps  the  sweet  repose  of 
contentment  upon  his  own  downy  pillow,  and  greets  the 
rising  sun  with  a  smile.  The  business  of  the  farmer 
being  to  produce,  everything  of  clothing  or  tools  should 
never  be  bought  of  others,  if  it  be  possible  to  make  them 
himself,  or  within  his  own  family.  Make  your  inventory 
every  year,  putting  everything  in  that  you  could  sell  for 
money,  even  to  the  most  trifling  thing.  Take  off  each 
year  for  depreciation  and  wear  as  much  as  will  make  its 
cash  value,  if  sold.  This  inventory  should  only  contain 
the  articles  on  hand  each  first  of  January,  as  stated  in 
the  former  examples  given.  You  will  then  be  able  to 
know  just  how  you  stand,  and  whether  you  are  making 
or  losing. 

Now,  for  the  mode  of  accomplishment.  In  the  first 
place,  what  crops  do  you  raise  ?  Have  you  ever  kept  an 
account  whether  one  kind  of  grain  has  done  better  than 
another  ?  or  whether  one  field  has  done  better  than 
another,  or  whether  one  field  is  better  adapted  to  a  parti- 
cular kind  of  crop  than  to  another?     If  you  have  not, 


i^6  How  to  make  Money. 

you  are  just  doing  what  a  merchant  would  who  has 
started  a  store,  or,  possibly,  two  stores,  and  has  never 
calculated  whether  they  are  making  money  or  not.  You 
would,  undoubtedly,  say  this  was  simple  in  him,  but,  like 
all  human  nature,  we  can  discover  defects  in  others  while 
we  are  ignorant  we  possess  the  same  ourselves.  Every 
field,  every  piece  of  wood,  every  horse,  cow,  ox,  hog,  pig, 
turkey,  hen,  or  fruit-tree,  should  be  responsible  to  you  for 
an  increase,  for  they  must  all  be  fed  and  cared  for ;  .and, 
if  they  cannot  show  a  clear  gain  to  you,  of  what  use  are 
they.  You  are  losing  money  in  their  feed,  and  the  labor 
bestowed  upon  them. 

The  first  great  principle,  then,  is  to  look  at  every  field, 
animal,  and  tree,  upon  your  farm,  and  see  to  it  that  they 
earn  their  living  by  increase.  Crowd  on,  to  every  single 
thing,  all  your  energies  to  make  them  work  to  advantage 
for  you,  and  never  take  a  business  step  that  does  not 
point  in  this  direction.  The  great  principle,  in  raising 
or  growing,  is  to  select  such  grains,  fruits,  or  animals, 
as  will  produce  the  greatest  value  with  the  least  expen- 
diture of  labor.  Following  this  principle  out  with  care, 
requires  extensive  information  ;  for  how  can  a  farmer 
know  without  reading"  and  inquiring,  whether  he  has 
that  which  will  bring  the  most  money  ?  The  grower 
must  remember  that,  if  he  wishes  to  thrive,  he  is  not 
raising  articles  to  suit  his  own  fancy,  but  the  fancy  and 
tastes  of  others  ;  and,  hence,  whatever  may  be  his  judg- 
ment as  to  their  intrinsic  value,  their  only  value  to  him  is 
what  others  will  give  for  them. 

Generally,  farming  is  carried  on  by  a  rotation  of  crops 
from  year  to  year,  without  inquiry  as  to  whether  the  land 
is  more  suitable  for  other  crops,  or  whether  the  stock  or 
fruits  are  such  as  are  in  fashion,  and  will  produce  the 


How  to  make  Money.  147 

most  money.  A  farmer  may  consume  his  substance  by 
supporting  a  dwarfy  unsalable  stock,  from  a  want  of 
knowledge  of  the  requirements  of  the  market.  He  may 
think  that  the  cattle  that  he  and  his  father  before  him 
raised,  are  just  as  good  as  any  other  stock.  In  one  sense 
they  may  be,  for  the  pound  of  beef  in  the  one  may  be 
just  as  good  as  any  one  of  the  three  or  four  pounds  in 
the  other ;  or  the  quart  of  milk  from  the  one  ma)  be 
just^as  good  as  any  one  of  the  three  or  four  quarts  from 
the  other.  But  he  will  find  out,  by  sad  experience,  that 
the  tastes  and  fancies  of  consumers  change,  as  well  as 
the  ability  of  two  cows  on  the  same  food  to  give  equal 
quantities  of  milk,  or  to  produce  the  same  amount  of 
beef. 

It  costs  as  much  to  keep  a  good  horse  as  a  poor  one, 
or  a  good  animal  of  any  kind  as  a  poor  one  ;  and  it  costs 
as  much  to  keep  an  unsalable  and  an  unproductive 
stock  as  it  does  to  keep  a  salable  one  or  a  productive  one. 
Let  us  examine  this  point,  and,  for  an  illustration,  sup- 
pose an  old-fashioned  farmer  had  thirty  head  of  stock, 
worth,  on  an  average,  $40  the  head,  making  in  value 
$1,200.  Another  farmer,  who  has  paid  attention  to  the 
demand  for  fancy  stock,  had  the  same  number  of  head, 
worth,  or  would  bring  in  the  market,  $90  per  head,  in 
value  $2,700.  Now,  we  will  suppose,  too,  though  that 
would  be  unequal  in  fact,  as  against  the  higher  priced, 
that  in  produce  of  milk  and  butter,  and  increase,  the 
total  profit  upon  each  lot  was  twenty-five  per  cent,  per 
annum.  The  profit  on  the  first  lot  would  be  $300,  and 
the  profit  on  the  second  would  be  $675.  In  addition  to 
this,  they  would  each  be  compelled  to  sell  a  portion  each 
year  ;  say  they  each  sold  one-eighth  of  the  whole  amount. 
The  first  would  sell  $150,  and  the  second  would  sell 


148  How  to  make  Money. 

$337-5°-  The  first  would  then  receive  from  his  stock 
$450,  while  the  second  would  receive  $1,012.50,  the 
difference  being  $562.50.  In  other  words,  the  one  that 
had  the  fancy  stock  would  receive  $562.50  per  annum  more 
than  the  other ;  or  the  difference,  in  three  years,  would 
make  up  the  difference  between  the  poor  and  the  good 
stocks  on  these  amounts. 

Now  this  amount  of  difference  per  annum  would  be 
$1.79  per  day  for  313  working  days  ;  and  this  improved 
at  7  per  cent,  for  five  years  gives,  by  tables,  $3,286  ; 
for  ten  years,  gives  $7,923  ;  for  fifteen  years,  gives 
$14,461;  for  twenty  years,  gives  $23,685;  for  twenty- 
five  years,  gives  $36,696  ;  for  thirty  years,  gives  $55,05 1  ; 
for  forty  years,  gives  $  1 1 7,472  ;  for  fifty  years,  gives 
$141,637.  Now,  Mr.  Farmer,  is  it  worth  while  to  look 
to  the  kind  of  stock  you  raise  ?  The  first  cost  is  nothing. 
If  you  cannot  afford  to  get  it,  sell  what  you  have  and 
get  half  or  quarter,  so  you  will  not  be  compelled  at  the 
least  to  keep  the  poor  stock.  Not  only  should  the  farmer 
and  grower  have  the  stock  which  would  command  the 
most  money,  but  they  should  also  consider  the  means  of 
increasing  it  to  be  the  best.  They  may  attend  closely 
to  obtaining  good  stock,  but  this  is  not  all  that  is  re- 
quired to  keep  it  the  best.  The  best  males  and  the  best 
females  should  be  bred  from.  Instead,  then,  as  is  gene- 
rally the  case,  of  selling  the  best  fillies,  the  best  male 
colts,  the  best  bull  calves }  or  the  best  heifers,  keep  the  best 
to  breed  from  and  sell  the  poorest.  If  the  stock-grower 
wishes  to  make  the  most  money,  he  will  accomplish  his 
end  in  this  way.  If  he  fails  to  do  this,  he  will  find  in  a 
few  years  that  instead  of  having  good  stock  all  the  while 
to  sell,  he  will  fall  back  on  a  very  poor  grade  of  stock, 
or,  at  best,  he  will  have  the  poorest  of  its  kind. 


How  to  make  Money.  149 

These  figures  show  a  difference  in  stock  alone,  while 
the  same  and  more  could  be  said  about  hogs,  poultry,  and 
fruit-trees.  A  great  source  of  loss,  and  by  no  means 
an  unimportant  one,  is  that  in  agricultural  implements, 
caused  by  exposure  to  the  weather  while  they  should  be 
under  cover,  out  of  the  rain  and  sunshine.  This  source 
of  loss  alone  to  a  farmer,  in  twenty  or  twenty-five  years, 
if  not  watched,  will  doubly  pay  for  his  farm.  Imple- 
ments made  of  wood,  such  as  wagons,  drays,  ploughs, 
rakes,  mowing  and  reaping  machines,  hand-rakes,  forks, 
etc.,  will  not  last  half  as  long  by  exposure  as  they  will 
under  cover  ;  and  the  farmer,  if  he  has  any  amount  of 
them  which  he  neglects  in  this  manner,  will  lose  more 
than  he  imagines. 

An  old  but  true  adage,  "  A  stitch  in  time  saves  nine," 
is  one  of  which  all  should  realize  the  force.  A  little 
thing  out  of  order  may  produce  serious  results.  If  any 
one  of  your  agricultural  implements  requires  repairs,  do 
not  wait  till  you  want  it,  but  have  it  done  at  once  and 
put  in  its  place.  An  illustration  given  by  Mr.  Say,  the 
political  economist,  will  show  the  importance  of  care  in 
little  matters : 

"  Being  in  the  country,  I  had  an  example  of  one  of 
those  small  losses  which  a  family  is  exposed  to  through 
negligence.  From  the  want  of  a  latch  of  small  value, 
the  wicket  of  a  barnyard,  looking  to  the  field,  was  left 
open.  .Every  one  who  went  through,  drew  the  door  to  ; 
but  having  no  means  to  fasten  it,  it  reopened.  One  day 
a  fine  pig  got  out  and  ran  into  the  woods,  and  imme- 
diately all  the  world  was  after  it.  The  gardener,  the 
cook,  dairy-maid,  all  ran  to  recover  the  swine.  The 
gardener  got  sight  of  him  first,  and  jumping  over  a  ditch 


150  How  to  make  Money. 

to  stop  him,  he  sprained  his  ankle,  and  was  confined  a 
fortnight  to  the  house.  The  cook,  on  her  return,  found 
all  the  linen  she  had  left  to  dry  by  the  fire,  burned  ;  and 
the  dairy-maid,  having  ran  off  before  she  tied  the  cows, 
one  of  them  broke  the  leg  of  a  colt  in  the  stable.  The 
gardener's  lost  time  was  worth  twenty  crowns,  valuing 
his  pains  at  nothing.  The  linen  burned  and  the  colt 
spoiled  were  worth  as  much  more.  Here  is  a  loss  of 
forty  crowns,  and  much  pain  and  trouble,  vexation  and 
inconvenience,  for  the  want  of  a  latch,  which  would  have 
cost  three  pence ;  and  the  loss,  through  careless  neglect, 
falls  on  a  family  little  able  to  support  it." 

Expenses  is  the  moth  that  eats  away  earnings.  They 
are  like  rats  and  mice,  or  other  vermin,  in  your  granary, 
They  consume  your  hard  earnings  invisibly,  and  all  you 
know  is  that  they  are  gone.  Scrutinize  well,  then,  every 
expenditure,  and  weigh  its  necessity.  Thought  costs 
nothing,  and  hence  it  is  not  expensive  to  think.  But  to 
think,  and  think  to  advantage,  saves  you  many  a  dollar, 
and  brings  many  more  to  your  pocket. 

Pick  up — hang  up. — Your  land  is  your  best  friend — 
treat  it  well. 

Pick  up — hang  up. — Your  extremities  are  your  heart — 
let  it  be  active. 

Pick-up — -hang  up. — Knowledge  is  a  good  land-dresser. 

Pick  up — hang  up. — Care,  a  good  granary. 

Pick  up — hang  up. — Carelessness,  a  rat-hole. 

Pick  up — hang  up. — Daybreak  dews,  farmer's  diamonds. 

Pick  up — hang  up. — Sow  when  you  should — reap  when 
you  can. 

Pick  up — hang  up. — Quick  market — empty  fields. 

Pick  up — hang  up. — Go  away  slow — come  back  quick 


How  to  make  Money.  151 

Pick  up — hang  up. — Good  master — good  horse. 

Pick  up — hang  up. — Much  care — much  money. 

This  subject  is  by  no  means  exhausted  ;  but  enough 
has  been  said  to  illustrate  the  subject  as  far  as  space  will 
admit.  The  farmer  can,  however,  read  to  his  advantage 
what  is  said  under  the  head  of  retail  merchandizing,  as 
his  business  partakes  very  largely  of  that  character. 

To  the  larger  class  of  farmers  and  growers,  the  same 
general  principles  apply.  The  figures,  in  any  relative 
comparison,  will  be  correspondingly  great ;  so  much  so, 
that  the  results  will  be  astonishing.  A  careful  study  of  the 
use  of  the  tables  for  earnings,  will  give  an  idea  how  to 
make  the  proper  substitutions  in  any  supposable  case. 
Enough  has  been  shown,  however,  that  the  reader  may 
see  how  important  it  is  to  the  farmer,  to  calculate  and 
understand  as  well  and  as  thoroughly  as  the  merchant, 
the  market  value  of  what  he  is  raising,  and  what  will 
bring  the  most  money  with  the  least  expense ;  and  he 
will  see,  too,  that  this  branch  of  industry  presents  as 
many  inducements  to  the  money-maker  as  any,  besides 
giving  him  a  life  of  independence,  and,  if  he  chooses  to 
make  it  such,  of  happiness. 

7 


152  How  to  make  Money. 


CHAPTER  XI. 

MECHANICAL    BUSINESS. 

Mechanical  produce. — Bonds.  —  Strong  arm.  —  Higher  grade. — 
Genius  and  hammer. — Wonderful  results. — Revolving  tongue. 
— Two  heads. — Which  makes  most. — Dollar  a  day. — Large  re- 
sult.— Can  make. — Do  make. — Can  rise. — New  beginner. — 
Golden  opportunity.  —  Impressions  made. —  Reverse.  —  Man 
you  want  to  see. — Be  a  gentleman. — Sunshiny  heart. — Out  of 
one  pocket  into  another. — Praise. — Strict  honesty. — Otherwise 
dead  loss. — Example. — Tailor's  trick. — Shoddy. — Don't  offend. 
— Customer  considers. — Another  shop. — Loss  and  gain. — Im- 
portant principle. — Another  example. — Somebody  lost  money. — 
Extortion. — Smoke-stacks. — Plumber. — Defective  joint. — Car- 
penter.— No  screws. — Flare  up. — Revelation. — Complained  of 
before. — Loss  of  work. — Hard  times. — Plumber  disabled. — 
.  Builds  largely. — Honest  mason. — Replaces  bad. work. — How 
much  won  and  lost. — Pennyworth. — Great  results. — Robbers. — 
Overcharged. — Who  lost  most? — Employed  most,  employer 
least. — Guarantees  of  success. — Effects  from  reaching.— Dis- 
credit spreads. — Journeyman's  neglect.— Interest  in  business. 
— Why  abuse  it. — Judging  of  credits. — Mechanics  not  bankers. 
— Different  branch. — Consult  engineer. — Reject  credits.— Sure 
dollar.— Principle  holds. — Another  head.— Paradox.— Ride  or 
walk. 

Mechanical  produce,  as  a  means  of  money-making, 
ranks  among  the  surest  methods  known,  with  the  same 
amount  of  capital,  both  for  the  principals  and  the  opera- 
tives. It  takes  rank  in  usefulness  and  necessity  with 
the  products  of  the  farmer.  As  has  been  seen  before, 
the  two  are  bound  together  by  bonds  almost,  if  not  alto- 
gether, inseparable.  The  hammer  of  the  mechanic  is  as 
often  raised  in  the  land  as  the  farming  implement.  They 
are  alike  producers — the  one  using  land  combined  with 


How  to  make  Money.  153 

labor,  the  other  using  the  products  of  the  land  combined 
with  labor,  to  produce -required  results.  These  impor- 
tant members  of  society  constitute  a  strong  arm  in  the 
body-politic. 

The  higher  grades  of  mechanism  require  great  scien- 
tific acquirements  and  extensive  practical  knowledge. 
Mind  and  genius  mark  out  the  works  for  the  mechanic's 
hand.  By  such  means  pyramids  have  been  raised ; 
walled  cities  made  impregnable  ;  water  highways  coursed 
through  desert  lands  ;  antipodes  communicate  with  each 
other  ;  iron  ships  plough  the  sea  without  sail  and  against 
contending  elements  ;  monsters  with  their  iron  heels  stride 
over  the  land  with  burdens  of  produce  inconceivable  ; 
and  finally,  the  climax  exists  in  a  revolving  tongue, 
which  tattles  to  every  man  in  the  land  at  the  same  mo- 
ment. Genius  has  moulded  all  these  things  within  her 
crystal  brain,  and  mechanism  has  hammered  out  the  pic- 
ture into  the  animated  structure. 

As  a  money-making  employment,  the  produce  resolves 
itself  into  two  heads  ;  completed  results,  and  the  manual 
labor  to  produce  them.  The  money  from  the  results 
goes  to  the  employer,  and  the  employed  receives  from 
the  employer  the  money  for  his  manual  labor.  It  would 
be  a  difficult  question,  after  careful  investigation,  taking 
everything  into  account,  which  can  really  accumulate 
the  most  money  in  certain  cases — the  employer  or  the 
individual  employed.  This  will,  undoubtedly,  be  looked 
upon  as  a  startling  proposition,  as  any  one  would  sup- 
pose, at  first  thought,  that  the  employer  would  make  the 
most.  A  little  investigation  and  calculation  will  deter- 
mine this  question,  and  put  it  in  its  true  light. 

As  a  general  rule,  good  mechanics  can  furnish  them- 
selves and  families  with  all  the  necessaries  of  life  and  make 


154  How  to  make  Money. 

a  dollar  a  day.  They,  of  course,  do  not  do  this,  because 
they  spend  uselessly  their  earnings.  If  they  spend  what 
they  gain,  and  the  employer  did  the  same,  they  would 
both  be  making  money  equally  fast ;  or  rather,  neither 
would  make  at  all.  But  suppose  the  mechanic  did 
make  a  dollar  a  day  continuously  for  twenty-five  years, 
and  improved  it  every  six  months  at  seven  per  cent., 
how  much  would  he  have  ?  The  tables,  for  twenty -five 
years'  earnings  of  one  dollar  a  day,  gives  the  sum  of 
$20,501.  Now  the  question  arises,  Does  each  boss  me- 
chanic on  an  average  make  this  sum  ?  By  no  means. 
Then  the  proposition  is  true,  that  a  mechanic  can  make 
and  accumulate  more  than  the  employers  as  a  class  do 
make. 

There  are  as  many  opportunities  for  advancement  in 
the  mechanical  as  there  are  in  the  mercantile  business. 
There  are  two  great  opportunities  for  distinction.  A 
young  man  can  rise  from  the  hammer  to  the  conducting 
of  a  large  mechanical  business  ;  and  if  he  acquires  an 
education  and  gains  knowledge,  can  shine  in  the  intellec- 
tual class  of  engineers,  inventors,  architects,  or  sculptors. 

This  chapter  will  be  mainly  devoted  to  show  how  the 
employer  can  make  the  most  money  by  his  trade.  The 
laborer  and  apprentice  have  been  considered  heretofore 
separably.  Let  us  suppose,  then,  that  the  apprentice  has 
been  thoroughly  grounded  in  a  knowledge  of  his  business, 
that  he  has  passed  through  his  allotted  time,  has  been 
a  successful  journeyman,  and  finally  taken  his  stand  and 
solicits  work  on  his  own  account.  He  has  assumed  to 
pay  a  certain  amount  of  expenditure  beyond  that  of  his 
personal  or  family  expenses.  He  then  wants,  nay,  must 
have  business.  He  has  his  sign  up,  his  shop  open,  but 
no  one  comes.     At  last  a  customer  enters,  either  out  of 


How  to  make  Money.  155 

curiosity  or  want,  and  makes  an  inquiry  about  something 
in  the  beginner's  line  of  business. 

Now  is  your  golden  opportunity,  for  you  can,  by  man- 
agement, make  one  business  friend  if  not  a  customer,  and 
possibly  both  if  you  never  see  another.  You  should 
contrive  by  your  conversation  and  manner  to  make  the 
following  impressions  upon  him  : 

First. — That  you  understand  your  business. 

Second. — That  you  understand  his  wants. 

Third. — That  you  are  honest  and  fair. 

Fourth. — That  you  are  obliging  and  in  his  interest. 

If  you  succeed  in  accomplishing  these  ends,  you  have 
commenced  business  nearer  success  than  half  the  world. 

Many  mechanics  wrho  did  not  understand  their  interest 
will  make  impressions  something  after  this  fashion  : 

First. — "  It's  none  of  his  business  what  I  know." 

Second. — "  I  know  near  enough  what  he  wants." 

Third. — "  I  am  honest  enough  to  make  a  profit  if  I 
can." 

Fourth. — "  I  am  as  obliging  as  I  choose  to  be,  and 
know  my  own  interest." 

These  indications  of  thought  might  gratify  the  person- 
al pride,  and  independence  of  mind  of  some,  but  would 
neither  bring  dollars  into  their  pockets,  nor  suit  a  cus- 
tomer who  could  be  of  great  pecuniary  advantage.  More 
than  this,  such  a  young  beginner  might  be  in  the  presence 
of  the  very  man  whom  he  had  hoped  while  a  journeyman 
might  come  along  and  lend  him  money  to  extend  his 
business  upon.  Above  all  things,  never  assume  an 
antagonism  of  interest  with  the  customer  you  deal  with, 
but  the  reverse,  and  you  will  be  brought  to  see  the  dol- 
lars that  flow  from  proximity  and  intermingling. 

To  be  a  perfect  gentleman  is  quite  easy,  and  very  pro- 


156  How  to  make  Money. 

ntable  in  transactions.  It  is  not  half  as  difficult  of  learn- 
ing and  practising,  as  your  trade  with  tools.  The  garb 
may  be  even  assumed  for  interest's  sake  if  you  do  not 
feel  what  you  act.  The  grand  idea  is  a  sunshiny  heart 
shown  forth  in  the  face,  with  pleasant,  agreeable,  and 
obliging  words,  with  an  air  of  interest  in  the  cause  of  the 
customer.  It  takes  coppers  out  of  his  pocket  and  puts 
them  into  yours,  in  a  way  as  pleasant  to  both  as  the 
mannerism.  You  make  twice  by  such  means  ;  you 
make  the  profit,  and  rivet  a  customer  to  your  business. 
He  talks  about  you  ;  tells  others  what  an  honest,  good 
fellow  you  are  ;  how  well  you  do  your  work  ;  and  above 
all,  you  are  reliable. 

You  will  soon  find  yourself  surrounded  by  a  lot  of 
pleasant-faced  customers  with  open  pockets.  They  will 
finally  come  to  you  for  many  things  they  want  done  not 
in  your  line,  and  urge  you  to  employ  the  men  to  do  the 
work,  and  charge  them  what  is  right.  Such  is  the  cer- 
tainty of  success  attached  to  such  a  course  of  trade,  that 
it  has  come  within  our  knowledge  that  a  tinman  was 
applied  to  to  build  a  millionaire  a  house !  Simply  be- 
cause the  tinman  was  honest,  and  the  millionaire  vainly 
supposed  that  he,  the  tinman,  could  make  any  other 
mechanic  in  like  manner  honest  and  faithful,  whom  he 
employed. 

There  is  no  one  quality  so  much  needed,  and  which 
commands  so  high  a  price,  as  strict  honesty.  When  a 
mechanic  is  found  honest  and  capable,  working  for  small 
or  fair  profits,  doing  his  work  for  the  interest  of  his  em- 
ployer, he  at  once  becomes  crowded  with  work,  and  an 
independence  and  a  fortune  stand  waiting  for  him  but  to 
be  gathered  in.  There  is  very  little  difference  what  your 
trade  may  be,  money  will  roll  in  from  all  quarters  to  fill 


How  to  make  Money.  157 

your  purse.  A  trick,  a  dishonest  job,  or  an  exorbitant 
profit,  is  a  dead  loss.  Better  not  do  the  job.  This,  no 
doubt,  would  be  regarded  by  some  tradesmen  as  an  ex- 
travagance. 

We  will  give  an  example  to  show  its  truth.  The  in- 
stance was  a  tailor,  and  the  deception  had  been  practised 
on  a  suit  of  clothes.  The  superior  knowledge  of  the 
tailor  had  not  been  used  for  the  benefit  of  his  customer, 
but,  as  he  supposed,  for  his  own,  by  a  little  trick  by  which 
he  would  make  an  undue  profit.  The  cloth  sold  to  the 
customer  for  the  suit  looked  just  as  well  to  the  eye  of  an 
inexperienced  person  as  though  it  had  been  a  first-rate 
article.  But  the  haberdasher  had  sold  it  at  a  bargain, 
and  the  tailor  had  bought  it  because  a  large  profit  could 
be  made  on  it  sub  rosa. 

Our  victimized  customer  had  his  suit  from  this  cloth, 
wore  it  but  a  short  time,  and  found,  to  his  amazement, 
that  it  was  "  shoddy."  The  gentleman  could  not  harbor 
the  thought  that  he  had  been  intentionally  shaved  ;  but 
having  his  own  way  of  testing  such  matters,  he  went  to 
the  tailor,  showed  him  the  "  shoddy,"  and  asked  an  ex- 
planation. The  tailor  replied  that  "  We  are  sometimes 
deceived  in  cloth  ourselves,  and  this  seems  to  be  an  in- 
stance. But,"  said  he,  "  I  have  a  cloth  here,"  taking 
up  a  piece,  "  that  is  the  best  I  ever  saw.  Let  me  make 
you  a  suit  from  this."  Now,  this  gentleman,  who  had  been 
deceived  once  by  the  tailor,  was  no  fool  in  such  matters. 
He  reasoned  by  analogy,  "  I  know  one  thing.  I  have  been 
deceived  by  this  man  in  one  piece  of  cloth,  and  I  knew 
nothing  about  that ;  why  may  I  not  be  deceived  again,  as 
I  know  nothing  about  this  ?  Then,  too,  I  have  paid 
this  man  good  money  for  what  he  acknowledges  himself 
was  a  deception  ;  but  he  says  nothing  about  making  me 


158  How  to  make  Money. 

another  suit  of  clothes  for  nothing,  nor  allowing  me  any- 
thing  in  the  way  of  compensation."  All  this  he  was 
revolving  over  in  his  mind  while  looking  at  the  cloth,  and 
the  tailor  was  eloquent  upon  its  merits. 

Like  a  sensible  man,  he  concluded  that  as  he  had  got 
the  worst  of  the  last  operation  with  the  tailor,  he  would 
not  expose  himself  again  to  the  same  thing,  and  quietly 
took  his  departure  with  the  reflection,  "  that  if  this  man 
has  intentionally  deceived  me  I  want  nothing  more  to  do 
with  him  ;  and  if  he  has  bought  this  cloth  through  igno- 
rance, he  does  not  understand  his  business,  and  I  will  try 
some  one  else."  The  poor  ignorant  tailor,  however, 
flattered  himself  that  he  would  still  continue  to  furnish 
him  with  his  clothing. 

The  gentleman  did  not  return,  as  the  tailor  supposed, 
but  dropped  into  another  establishment,  called  the  atten- 
tion of  this  tailor  to  the  worthless  suit,  told  him  the  story, 
but  the  man  said  nothing'about  the  other  tailor,  which  a 
little  surprised  the  gentleman,  and  the  fact  made  rather  a 
favorable  impression  upon  him.  The  new  tailor  began 
showing  his  goods,  and  remarked  that  "  This  cloth  is 
showy  and  looks  as  good  as  this,  but  this  is  much  the 
best  and  will  wear  twice  as  long  as  the  other."  The  gen- 
tleman was  pleased,  and  said  to  himself:  "This  man  has 
the  air  of  open-hearted  honesty,  and  for  aught  I  can  see 
has  equally  good  clothing  at  less  prices." 

The  result  was  that  he  sold  the  gentleman  his  cloth- 
ing for  the  year,  amounting  to  $450,  and  also  his  three 
sons,  who  had  purchased  at  the  same  place  with  the 
father;  one  bought  $550,  the  other  $400,  and  the  third 
$375,  making  altogether  a  loss  to  the  first  tailor  of  sales 
amounting  to  £1,775,  and  a  S^n  to  tne  second  of  the 
same  amount.     It  so  happened  that  the  father  and  three 


How  to  make  Money.  159 

sons  continued  to  buy  on  an  average  the  same  amount 
each  year  for  twenty  years,  when  the  father  died.  Now 
let  us  see  how  this  affair  turned  out  in  money  made  by 
one  and  lost  by  another.  Tailor  No.  2  made  30  per 
cent,  on  the  amount  sold  on  an  average,  or  $532.50  per 
annum  for  twenty  years,  and  tailor  No.  1  lost  that  much 
by  his  little  deception.  That  is,  one  tailor  gained  $1.41 
per  day,  and  the  other  lost  that  sum.  By  the  ta.ble  of 
earnings  for  twenty  years,  we  find  that  this,  improved  at 
7  percent,  for  that  time,  would  amount  to  $18,657.  The 
tailor  No.  1  tried  to  make  some  10  or  12  dollars  by  de- 
ception, and  it  cost  him  $18,657.  Is  "honesty  the  best 
policy "  or  not  in  trade  ?  This  is  a  single  instance  of 
the  ten  thousand  cases  that  occur  daily  through  utter 
ignorance  of  the  results  which  flow,  from  such  little 
"  tricks  in  trade,"  as  they  are  denominated.  From  this 
illustration  some  very  important  principles  to  mechanics 
may  be  deduced. 

First. — Customers  do  not  generally  understand  your 
trade,  and  do  not  know  whether  the  goods  are  well  made 
or  work  well  done  on  inspection.  You  do  ;  therefore  be 
honest.  If  not,  sooner  or  later  you  will  be  caught,  and 
will  lose  money  by  it  whether  you  are  caught  or  not. 

Second. — If  a  man  has  paid  you  good  money,  and  you 
find  out  afterwards  that  he  has  not  had  value  received  in 
goods  or  work,  you  never  can  make  as  much  money  by 
any  other-  means  as  by  paying  him  back  his  honest  dues. 
That  money  will  quadruple  to  you  in  a  year. 

Third. — Never  speak  ill  of  a  fellow-tradesman ;  you 
will  lose  money  by  it.  Let  every  man's  experience  be 
his  own  schoolmaster  ;  you  can't  afford  to  teach  for 
nothing. 

Fourth. — If  you  have  been  deceived  yourself,  whereby 

7* 


160  Hozv  to  make  Money. 

you  deceive  another,  make  full  restitution.  Don't  wait  to 
have  it  cork-screwed  out  of  you.  You  will  make  money 
by  it. 

These  principles  underlie  permanent  success  in  me- 
chanical trades  and  business  growing  out  of  it.  The 
tradesman,  and  the  mechanic  also,  have  great  temp- 
tation laid  before  them,  from  the  very  nature  of  their 
business,  to  give  the  customer  less  than  honest  value. 
Very  few  understand  the  value  of  mechanical  work,  or 
know  how  much  a  mechanic  ought  to  do  in  a  given  time, 
and  hence  over-charge  and  under-time  lie  alone  with  the 
tradesman  and  the  mechanic.  But  though  this  may  be 
true,  the  customer,  by  an  instinct  from  observation,  will 
find  out  he  is  unfairly  dealt  with,  though  he  may  not  know 
exactly  why,  or  how.  It  is  quite  a  common  idea  among 
mechanics  that  they  must  not  do  the  job  too  well,  for  it 
will  spoil  the  trade ;  hence  they  will  do  the  work  to 
answer  a  temporary  purpose,  and  expect  another  job  to 
do  it  over  in  a  short  time,  and  so  on. 

An  instance  has  occurred  while  this  article  was  being 
written.  A  low  chimney  of  a  neighboring  house,  seen 
from  my  window,  required,  it  was  presumed,  a  smoke- 
stack ;  for,  one  morning,  two  mechanics  appeared  upon 
the  roof  with  their  tools,  and  under  the  arm  of  one  was  a 
smoke-pipe,  about  two  feet  long.  The  men  laid  down 
their  tools,  sat  down  upon  the  coping,  quietly  took  out 
their  pipes,  filled  and  lit  them,  and  took  a  good  smoke. 
They  seemed  to  be  engaged  in  conversation,  as  they 
were  looking  about  and  pointing  here  and  there.  Final- 
ly, the  ashes  were  knocked  out  of  their  pipes,  they  got 
up,  stretched  themselves,  yawned,  and  walked  towaids 
the  chimney.  Here  they  stood,  with  their  hands  in  their 
pockets,  for  a  considerable  time,  and  after  spending  an 


How  to  make  Money.  161 

hour,  if  not  more,  took  up  their  tools  and  went  to  work. 
It  is  needless  to  say  that  the  forenoon  was  exhausted  in 
putting  up  the  two  feet  of  pipe.  The  next  day  they 
came  back  with  another,  and  it  was  put  in  a  different  flue 
in  the  same  chimney,  and  the  operation  was  substantial- 
ly the  same  as  the  one  the  day  before.  These  two  stayed 
up  two  days,  when  the  same  men  came  and  took  them 
down,  and  carried  them  off.  The  next  day  they  came 
with  them  again,  lengthened  to  about  five  feet,  and 
about  the  same  amount  of  time  was  spent  again.  These 
two  stayed  up  three  or  four  days,  but  in  the  meantime 
they  came  and  put  up  a  galvanized  iron  one  in  the 
third  flue,  which  was  about  twelve  feet  high  from  the 
top  of  the  chimney.  In  a  day  or  two  the  men  came 
again,  took  down  the  five-feet  pipes,  carried  them  off, 
and  the  next  day  came  with  them  again,  lengthened  to 
the  height  of  the  galvanized  iron  one,  and  put  them  up. 
Since  then,  some  four  days,  they  have  not  appeared  on 
the  roof. 

Somebody  lost  money  by  this  operation.  The  man 
may  pay  the  bill,  and  the  mechanic  may  have  supposed 
he  had  done  one  more  job  to  advantage.  But  the  chances 
are  he  will  lose  money  by  it ;  for  if  he  had  not  been  igno- 
rant of  his  business,  he  would  have  known  that,  on  ac- 
count of  the  height  of  the  adjoining  walls,  twelve-feet 
smoke-stacks  were  necessary,  and  he  would  have  made 
them  and  put  them  up  in  half  a  day.  If  he  was  dishon- 
est, and  wished  to  "  run  the  job,"  he  will  sooner  or  later 
lose  by  it,  for,  at  least,  he  has  taught  his  hands  a  bad 
trick. 

This  course  of  business  generally  brings  about  the 
same  result  as  in  the  case  of  the  tailor,  by  the  varieties 
of  «vay  in  which  it  is  practised.     The  loss  to  the  extor- 


Ib2  How  to  make  Money. 

tioner  is  the  same,  whether  the  extortion  be  in  the  way 
of  exorbitant,  or  the  under  value  of  the  work  done. 
We  will  examine  a  case  a  little  more  in  point,  where  the 
results  were  seen  directly.  An  application  was  made  by 
a  wealthy  gentleman  to  his  plumber,  to  have  some  trifling 
repair  done  to  a  weeping  joint  of  pipe  in  his  house.  He 
at  once  dispatched  his  journeyman  to  make  the  repair. 
Having  arrived  at  the  house,  he  proceeded  to  the  exami- 
nation of  what  was  to  be  done.  The  repair  was  in  plain 
sight,  but  was  a  little  inconvenient,  on  account  of  some 
wood-work,  but  nevertheless  could  have  been  done  with- 
out its  removal ;  but  in  order  to  have  plenty  of  room  he 
tore  away  the  wood-work  and  was  then  ready  to  proceed. 
It  took  but  a  few  moments  to  do  the  work,  though  half  a 
day  was  consumed  in  talking  with  the  servants,  and  gene- 
ral puttering  about.  The  work  was,  however,  completed  ; 
and  as  it  turned  out,  the  leak  proved  to  result  from  a  slight 
defect  in  the  work  of  the  same  principal  and  same  jour- 
neyman at  the  time  the  house  was  built. 

The  plumber  made  out  his  bill,  and  it  was  paid  by  the 
owner  with  the  passing  remark,  that  "  work  should  be 
well  done  at  first,  and  all  such  expenses  and  annoyances 
would  be  avoided."  The  owner  sent  for  his  carpenter 
and  told  him  to  replace  the  wood-work  torn  up  by  the 
journeyman  plumber.  The  carpenter  happened  in  like 
manner  to  have  done  the  work  after  the  plumber  at  first, 
and  on  proceeding  to  the  place,  found,  to  his  amazement, 
the  new  work  split  to  pieces,  and  entirely  unfit  for  use 
again,  for  it  had  been  nailed  down  instead  of  screwed  down, 
as  he  had  directed,  and  as  he  supposed  had  been  done. 
He  reported  the  state  of  the  case  to  the  owner,  who 
directed  that  new  work  should  be  put  up.  It  was  com- 
pleted, the  bill  presented,  and  paid  by  the  owner,  who 


How  to  make  Money.  163 

remonstrated  with  the  plumber  because  his  journeyman 
^had  destroyed  the  wood-work,  as  the  carpenter  said, 
"  unnecessarily,  as  the  work  could  have  been  done  with- 
out." The  plumber,  piqued  at  the  carpenter's  remark, 
told  the  owner  that  "  If  the  work  had  been  screwed 
down,  as  it  should  have  been,  instead  of  nailed  down,  as 
it  was,  there  would  have  been  no  difficulty." 

These  transactions  and  conversations  revealed  to  the 
owner  some  valuable  information,  from  which  he  disco- 
vered the  following  facts  : 

First. — That  the  plumber  had  done  his  work  imper- 
fectly at  first. 

Second. — From  this  cause  he  had  lost,  and  no  restitu- 
tion was  made. 

Third. — That  the  carpenter  had  done  his  work  badly 
at  first. 

Fourth. — From  this  cause  he  had  lost,  and  no  restitu- 
tion was  made. 

Like  a  wise  man,  he  revolved  over  in  his  own  mind  the 
whole  matter,  not  because  of  its  importance  in  the  pre- 
sent case,  but  its  bearing  upon  the  future,  for  he  was  a 
large  landowner  and  built  extensively.  He  made  up 
his  mind  and  kept  his  conclusions  to  himself.  Almost 
any  one  will  overlook  an  error,  or  a  mistake,  or  an  una- 
voidable accident  in  another ;  but  few  men  will  be  satis- 
fied with  being  compelled  to  pay  for  it. 

On  reflection,  the  plumber  remembered  that  the  same 
journeyman,  considered  one  of  the  best  he  had,  and 
receiving  the  highest  wages,  had  been  complained  of 
twice  before  for  similar  neglect,  and  had  caused  him 
much  trouble  at  those  times.  It  so  happened  that  soon 
after,  work  became  slack,  business  dull,  and  the  plumber 
was  obliged  to  discharge  some  of  his  force.     Much  to 


164  How  to  make  Money. 

the  surprise  of  the  journeyman  and  all  in  the  place,  when 
pay-day  came  around  he  was  discharged. 

The  carpenter  in  the  meantime  finding  out  that  the 
plumber  had  "  let  the  cat  out  of  the  bag  "  with  the  owner, 
respecting  the  improper  manner  in  which  his  work  had 
been  done,  brought  up  the  journeyman  carpenter  for  an 
explanation,  who  excused  his  neglect  because  he  had  no 
fit  screws,  and  supposed  that  it  would  make  no  difference 
in  that  one  place,  as  all  similar  work  in  the  other  parts 
of  the  house  had  been  screwed  down  and  done  properly. 
A  few  days  after  the  carpenter  saw  a  journeyman  from 
one  of  the  neighboring  carpenter-shops  enter  the  house 
of  his  former  profitable  customer,  with  his  tool-box  on 
his  shoulder.  He  well  knew  what  that  meant ;  and, 
incensed  at  the  loss  of  such  a  man's  work  by  the  neglect 
of  his  journeyman  to  step  out  and  procure  what  screws 
he  wanted,  not  a  hundred  feet  distant,  discharged  him  on 
the  very  next  pay-day. 

Times  being  hard,  and  work  dull,  neither  the  journey- 
man plumber  nor  carpenter  could  get  anything  to  do. 
They  had  each  laid  up  a  little,  but  it  was  fast  going  when 
all  was  expense  and  no  income.  They  were  willing  to 
work  for  less  wages  than  they  had  received,  but  no  one 
seemed  to  want  them  ;  for  all  asked  where  they  had 
worked,  and  why  they  had  left.  Having  nothing  to  do, 
the  plumber  went  into  the  country  (for  he  was  employed 
in  New  York),  where  he  remained  some  time  ;  and 
finally  fell  from  a  tree,  while  gathering  some  nuts,  broke 
his  wrist,  and  was  disabled  for  life.  The  journeyman 
carpenter  fook  sick,  after  being  out  of  business  for  some 
time,  was  bed-ridden  for  a  year,  and  died. 

The  rich  man,  out  of  whose  work  all  this  trouble  had 
arisen  from  an  imperfect  joint  of  the  plumber,  soon  built 


How  to  make  Money.  165 

largely  to  improve  some  vacant  property  which  he  had 
The  materials  were  all  purchased,  and  his  carpenter-work 
done  by  the  day,  which  was  supposed  would  amount  to 
$53,000.  The  plumbing  bill,  done  in  like  manner,  was 
estimated  at  $11,000.  The  mason  who  had  done  this 
gentleman's  work  for  a  long  time,  was  a  very  worthy, 
honest  man  ;  but  a  little  circumstance  happened  about 
this  time  which  won  the  gentleman's  confidence  com- 
pletely. The  mason  had  done  the  work  of  a  brown-stone 
front  house  but  a  short  time  before,  and  the  foundation  to 
the  front  stoop  had  been  either  carelessly  laid,  or  from 
some  other  cause,  a  settlement  had  taken  place  and 
cracked  one  of  the  steps  ;  and,  although  it  did  not  detract 
much  from  the  value  of  the  house,  it  was  an  eye-sore, 
and  was  evidence  of  poor  work  somewhere.  The  mason 
happened  to  pass  the  house  one  day,  and  his  eye  at  once 
caught  the  defect.  He  stopped,  looked  at  it  for  a 
moment,  and  then  went  on  ;  but  the  thing  kept  troubling 
him,  and  he  finally  said  to  himself,  **  This  is  not  right ;  I 
got  my  money  for  good  work,  and  my  work  is  not  good  ; 
the  breaking  of  that  step  is  the  fault  of  the  mason  who 
set  the  stoop,  and  I  don't  want  that  to  remain  as  my  sign- 
board, even  though  I  may  not  be  legally  bound  to  re- 
place it." 

He  applied  to  the  owner  for  permission  to  replace  the 
stone,  much  to  his  surprise ;  and  it  was  done.  When  the 
owner  had  determined  to  build  this  large  amount  of  work 
just  spoken  of,  and  when  the  mason's  bill  alone  was  es- 
timated at  $84,000,  there  were  no  questions  asked,  but 
simply  the  plans  were  handed  to  him  with  directions  to 
do  the  work  by  the  day,  and  purchase  the  materials  as 
cheaply  as  he  could,  keeping  the  owner  advised  of  every 
large  bill.     The  mason  was  much  surprised  to  hear  that 


1 66  How  to  make  Money. 

his  old  friends,  the  carpenter  and  plumber,  were  r.  ot  to  be 
employed,  which  led  to  various  inquiries  what  could  be 
the  matter.  "  Were  they  insolvent  ?  "  said  one.  Or,  "  Are 
they  wrong  in  some  way  ? "  No  one  could  find  out  why 
they  were  not  employed,  as  they  had  been,  by  this  large 
owner  of  property,  and  who  was  known  to  be,  by  every 
one,  a  very  upright,  honest,  fair  man,  and  one  who  was 
noted  for  employing  one  set  of  mechanics. 

These  buildings  were  finally  completed,  the  amounts 
of  the  various  bills  exceeding  the  first  calculation,  mainly 
because  more  work  became  necessary.  The  plumbing 
bill  amounted  to  $12,722  ;  the  carpenter's  bill  was  $59,432  ; 
the  mason's  bill  was  $91,200.  On  inquiry,  the  plumber 
made  $1,300,  a  little  over  ten  per  cent;  the  car- 
penter made  $4,350,  and  the  mason  made  $8,120.  Five 
years  afterwards,  the  same  owner  built  a  new  lot  of 
houses  and  stores,  the  entire  cost  of  which  was  :  for 
plumbing  bill  done  by  the  same  plumber,  $13,100,  the 
carpenter's  work  $75,000,  and  the  mason's  work  $104,210. 

Now,  let  us  see  for  an  instant  what  the  plumber  lost 
by  the  careless  hand,  and  his  failure  to  make  good  defec- 
tive work  without  being  driven  to  it ;  what  the  carpenter 
lost  in  like  manner,  and  what  the  other  plumber  and  car- 
penter gained  by  their  loss.  The  first  great  loss  to  the 
plumber  was  $1,300,  and  the  jobbing  work  of  this 
owner,  which  was  worth  in  profit  $100  per  year  for  the 
five  years  to  the  second  large  job.  $1,300  will  amount 
at  interest  in  five  years  to  $1,820,  and  $100  for  five  years 
added  and  improved  would  amount  to  $588  ;  add  profits 
on  the  plumbing  job,  $13,100 — $1,400,  making  the  sum 
lost  to  first  plumber  and  gained  by  second,  $3,808. 

If,  then,  the  plumber  had  been  thirty  at  the  date  of 
the  making   the  imperfect  joint,  or  of  the  first   large 


How  to  make  Money.  \( ~ 

amount  of  work  done,  he  would  have  had  when  he  was  60, 
$20,677.  He  lost,  then,  at  the  age  of  60,  $20,677,  as  tne 
result  of  his  journeyman  having  made  a  bad  joint  at  30. 
The  carpenter,  in  like  manner,  lost  the  amount  of  the  full 
bill  of  profit,  $4,350,  and  the  owner's  jobbing  for  five  years, 
equal  to  $350  per  year,  and  the  profit  on  the  second 
large  job,  amounting  to  $7,422,  which  being  computed  as 
in  the  case  of  the  plumber,  amounts  in  the  five  years  to 
$lS>SS°>  t0  say  nothing  of  any  other  business  trans- 
actions or  profits  after  the  expiration  of  five  years.  Now 
if  the  carpenter  was  30  years  of  age  when  the  first  large 
job  was  lost,  he  would  have  lost,  at  the  age  of  45, 
$31,100;  at  the  age  of  55,  $62,200;  and  at  the  age  of  65, 
$124,400,  for  the  want  of  6  cents'  worth  of  screws,  or  a 
failure  to  make  good  without  charge  the  damage  which 
the  want  of  such  screws  occasioned. 

These  are  the  incidents  growing  out  of  the  business 
of  mechanical  life.  The  trades  here  selected  are  samples 
of  all  others,  and  the  losses  occasioned  in  them  can  be 
traced  to  similar  sources.  Nor  are  mechanical  trades 
alone  affected  by  such  little  things.  A  man  may  fail  to 
be  elected  President  by  one  vote,  and  that  vote  lost  by 
a  neglect  to  speak  pleasantly  to  an  acquaintance  in  the 
street.  Small  matters  sometimes  guide  great  events  ; 
nor  can  the  wisest  tell  what  may  result  from  a  mere 
trifle.  A  nut  carelessly  or  imperfectly  finished  in  the 
boiler  of  a  magnificent  steamship  may  be  the  penny  value 
that  will  send  hurling  into  fragments  her  proud  form, 
and  hurry  into  eternity  her  human  freight.  Upon  the 
hammer  of  the  mechanic  may  hang  the  life  or  death  of 
many  human  beings.  There  can  be  no  end  to  the  vast 
list  of  things  that  could  and  do  occur  by  the  wrongs  of 
the  journeymen.     As  has  been  seen,  they  can  wrench 


168  How  to  make  Money. 

from  the  pockets  of  their  employers  money  at  their  will 
But,  is  it  less  than  robbery,  or  are  they  not  likewise  rob- 
bers ?  Is  there  any  real  difference  between  the  man  who 
does  it  slyly  one  way  and  the  man  who  does  it  slyly 
under  cover  of  darkness  ?  Is  there  any  difference  in  prin- 
ciple whether  a  man  is  robbed  by  collusion  of  mechanics, 
by  overcharges,  or  by  bad  work — or  by  robbers,  or  by 
passing  any  false  token  or  counterfeit  money  ? 

The  fraud  is  the  same  in  both  instances,  and  the  only 
reason  why  they  are  not  so  regarded  generally  in  the 
community  is  that  the  one  is  quite  common,  the  other 
comparatively  rare.  The  mechanic  whose  bill  or  demand 
is  a  wrong,  may  wrench  from  the  customer  the  money 
which  he  demands,  and  the  payer  may  "  stand  and  de- 
liver," because  it  is  the  cheapest  mode  to  get  off.  But, 
in  all  such  cases,  there  are  two  who  lose  ;  the  one,  how- 
ever, much  more  than  the  other.  In  the  case  of  the  man 
victimized  by  the  tailor,  who  lost  the  most  then  ?  The 
losses  could  scarce  be  compared,  and  they  fell,  too,  upon 
the  one  who  could  afford  it  least.  In  the  case  of  the  jour- 
neyman plumber  who  caused  the  loss  of  a  small  bill  to 
the  rich  man,  who  lost  the  most,  the  plumber  himself 
or  the  rich  man  ?  and  who  was  the  best  able  to  afford  it ; 
he  who  paid  for  the  half-day's  work  and  materials,  or  the 
one  who  received  the  money  ?  In  the  case,  too,  of  the 
journeyman  carpenter,  who  lost  the  most  ;  he  who  failed 
to  put  in  the  screws  where  he  should,  or  the  rich  man 
who  had  to  pay  for  the  blunder,  or  the  carpenter  him- 
self, who  received  pay  for  repairing  his  own  wrong,  or  the 
man  who  paid  the  money  ? 

Let  us  examine.  The  journeyman  plumber  had  been 
out  of  employment  just  three  months,  when  he  fell  from 
the  tree  and  broke  his  wrist,  which  would  not  in  all  pro- 


How  to  make  Mo7iey.  169 

bability  have  happened  if  he  had  remained  at  work.  He 
was  receiving  $2  per  day,  for  this  was  some  time  ago. 
Up  to  the  time  of  the  accident,  he  had  lost  $164.  Add 
to  this  his  doctor's  bill,  $26  ;  and  two  months'  time  in 
which  he  could  do  nothing,  at  75  cents  per  day,  after 
his  wrist  was  broken,  $42  ;  and  his  board  in  the  mean- 
time, $12,  and  his  account  stands  thus  : 

Three  months'  lost  time,  84  days,  at  $2 $168  00 

Twelve  weeks'  board,  $2.50  per  week ....  30  00 

Doctor's  bill 26  00 

Three  months'  lost  time,  56  days,  at  75  cts.  42  00 

Four  weeks'  board,  $2.50  per  week 10  00 


$276  00 

He  was  just  twenty  years  of  age  when  he  received 
employment  at  75  cents  per  day.  He  lost,  then,  $1,25 
a  day  on  his  former  wages  ;  and  no  matter  what  wages 
generally  might*  be  at  any  time,  he  would  lose  this  much 
a  day  as  the  difference.  Now  let  us  look  at  all  the  losses 
in  this  transaction,  with  reference  to  the  future,  at  50  years 
of  age.  The  journeyman  plumber's  loss  may  be  set  down 
at  $1.25  per  day  till  he  was  50,  or  for  30  years;  and 
also  $276  compounded  at  7  per  cent,  as  we  do  the  whole: 
Journeyman's  absolute  loss,  at  50  years  of  age,  $2,104.36. 

If  it  would  be  just  to  estimate  his  loss  of  $1,25  per 
day  on  account  of  hurting  his  wrist,  he  would  lose  alto- 
gether, in  that  time,  $40,548.78.  The  boss  plumber  lost 
$1,300  in  the  first  job  of  the  rich  man,  and  $100  a  year 
on  his  repairs  for  5  years,  making  for  the  5  years  a  loss 
of  $2,408.  He  then  lost  $1,400  on  the  second  job,  by 
not  getting  it,  which,  added  to  $2,408,  makes  $3,808  ; 
improved  for  25  years  at  7  per  cent.,  gives  his  relative 


170  How  to  make  Money. 

loss  with  the  journeyman,  $20,677.  The  boss  carpenter 
lost  by  profits  on  first  job,  by  not  getting  it,  and  on  repairs 
for  5  years,  alike  computed,  $8,128;  and  adding  the  pro- 
fits on  second  job,  not  got,  of  $7,422,  makes  $15,550, 
which,  improved  at  7  per  cent,  for  25  years,  relatively 
with  journeyman  plumber  and  boss,  gives  $84,436. 

Now,  what  did  the  rich  man  lose  by  the  same  opera- 
tion, presuming  he  got  his  work  done  just  as  well,  and 
no  better,  by  those  whom  he  employed  ?  He  paid  the 
plumber  $4.50  for  what  he  did,  and  that,  improved  to  the 
same  date  of  all  three,  at  7  per  cent,  gives  $32.24.  He 
paid  the  boss  carpenter  $30  for  what  he  did,  which,  in 
like  manner,  makes  $228.30. 

It  is  seen  by  this  that  the  journeyman  lost,  by  making 
the  bad  joint,  absolutely  $64  to  the  owners  $1  ;  and  if 
the  accident  was  taken  into  account,  he  lost  $1,229  t0 
the  owner's  $1.  The  Jdoss  plumber  lost  $646  to  the 
owner's  $1  ;  and  the  boss  carpenter  lost  $370  to  the 
owner's  $1,  on  the  works  respectively.  Who,  then,  loses 
the  most  money  by  bad  work,  the  employed  or  the 
employer  ?  But  it  must  be  remembered  that  these  are 
not  all  the  jobs  which  the  boss  carpenter  and  plumber 
lost  from  this  one  customer,  for  he  still  continued  to 
build  ;  and  if  the  whole  profit  which  these  two  men  could 
have  made  was  estimated,  it  would  reach  a  large  fortune 
if  it  had  been  saved  and  improved  at  interest. 

As  a  consequence,  the  following  may  be  assumed  as  a 
sure  guarantee  of  success  : 

First. — Know  well  your  trade,  and  do  it  well. 

Second. — Be  civil,  polite,  and  obliging  to  all. 

Third. — Be  just,  honest,  and  trustworthy. 

Fourth. — Never  buy  till  you  know  the  value. 

Fifth. — Stick  close  to  your  trade,  and  improve. 


How  to  make  Money.  ij\ 

Sixth. — Get  the  money  for  what  you  do,  and  pay 
prompt. 

If  these  are  lived  up  to,  success  in  money-making  is 
guaranteed. 

There  is  no  mechanical  trade  that  is  not  injured  by 
just  such  cases  as  have  been  cited.  It  would  be  useless 
to  prolong  them  further.  Their  effects  are  very  far-reach- 
ing, and  the  reason  why  they  are  not  more  readily  felt,  is 
the  fact  of  their  distance,  and  not  their  uncertainty. 
Morals,  however,  being  entirely  set  aside,  the  interest  of 
the  mechanic,  in  dollars  and  cents,  is  directly  at  stake. 
Then,  too,  when  a  boss  mechanic  discharges  his  journey- 
man it  is  a  public  stigma  upon  him,  as  a  general  thing ; 
and  a  shrewd  one,  who  hears  of  the  fact,  concludes  there 
is  something  wrong  somewhere.  For  a  man's  discredit 
spreads  like  falling  quicksilver  on  a  marble  slab. 

To  the  journeymen  who  performs  the  labor,  a  word  may 
not  prove  unprofitable.  Your  neglect  may  cause  great 
pecuniary  loss  to  yourself  and  to  your  employers,  as  you 
have  seen.  No  better  evidence  of  ignorance  of  your 
own  interest  can  be  found  than  a  boast,  often  indulged  in, 
of  independence  of  your  employer.  He  is  the  journey- 
man's best  friend,  because  through  him  he  gets  his 
money,  and  upon  the  same  principle  that  the  land  is  the 
farmer's  best  friend.  To  slight  work  is  to  lose  money, 
because  you  may  lose  your  employment.  Look  at  the 
business  as  your  own,  only  managed  by  the  employer  as 
a  means  of  bringing  you  money.  You,  then,  become 
interested  in  its  good  credit,  thereby  insuring  your  share 
in  its  results.  You  are  in  fact  a  partner  in  it,  drawing 
profits,  but  paying  no  losses,  expenses,  or  running. any 
risks.  Your  pay  comes  whether  the  business  in  general 
is  successful  or  not.     In  one  sense  you  are  the  principal, 


172  How  to  make  Money. 

the  business  your  subordinate.  If  the  business  is  not 
worth  nursir>g,  saving,  or  caring  for  on  account  of  the 
principal,  it  is  worth  it  as  your  bank  which  pays  you  a 
daily  dividend.  Why  abuse  it  ?  Why  go  out  and  do 
that  which  will  waste  its  credit  and  squander  its  money  ? 
Why  by  your  carelessness  drive  custom  irom  its  doors, 
when  your  bread,  your  meat,  and  your  money,  depend 
upon  its  support  ? 

In  this  business,  as  ;n  most  others,  there  is  no  trouble 
in  making  money ;  the  trouble  lies  in  keeping  what  is 
made.  It  differs  in  some  respects,  however,  for  work  is 
sometimes  done  for  th<>se  who  do  not  pay,  and  hence 
money  may  not  be  made.  At  this  point  of  the  business 
a  new  principle  enters,  and  that  is  the  judging  of  credits 
as  a  means  of  making  money.  If  the  mechanic  has  read 
the  article  on  Banking  and  Insurance,  he  must  have  per- 
ceived that  the  judging  of  credits  is  strictly  speaking  a 
banking  business,  whether  it  be  done  by  one  or  by 
another,  and  requires  skill  and  experience,  as  in  any 
other  trade.  How  many  mechanics,  however,  do  this 
thing,  and  risk  their  all  upon  the  accomplishment  of  that 
on  which  they  have  never  spent  a  moment  of  time, 
and  possibly  never  turned  a  thought  before,  the  very  point 
that  may  lose  them  the  money  value  of  their  long  worked- 
for  trade.  To  judge  of  the  value  of  credit  is  the  most  in- 
tricate and  difficult  branch  of  business,  requiring  prac!icey 
experience,  and  knowledge.  A  mechanic  who  gives  credit, 
goes  into  a  banking  business  ;  and  he  knows  himself,  pro- 
bably by  sad  experience,  whether  he  is  a  banker  or  not. 
Let  him  ask  himself  whether  he  is  competent  to  take 
charge  of  a  bank,  and  he  will  appreciate  his  own  posi- 
tion in  doing  the  same  thing  for  himself. 

Suppose  the  mechanic  wanted  a  journeyman,  would  he 


How  to  make  Money.  175 

hire  the  president  of  a  bank,  who  had  never  raised  a 
hammer  ?  If  you  wanted  to  know  the  value  of  leather, 
would  you  go  to  the  ironmonger  to  inquire  ?  Or  if  you 
wanted  to  know  the  value  of  iron,  would  you  inquire  ol 
the  leather-dresser  or  shoemaker  ?  If,  then,  your  cus 
tomer  wants  credit,  go  to  his  bank  and  find  out  if  they 
will  take  his  note,  and  whether  they  consider  it  good  01 
valuable,  or  whether  you^could  sell  it  anywhere  without 
your  own  name.  If  you  can  get  enough  for  the  note,  in 
this  way,  to  pay  you,  go  on  and  do  the  work ;  and  if  not, 
you  had  better  let  it  alone,  and  make  a  sure  dollar  some- 
where else  in  the  meantime.  Whenever  you  trust,  take 
as  much  time  to  consider  the  value  of  the  security  as  it 
would  take  you  to  earn  that  much  money,  and  you  will 
be  pretty  safe.  A  note  may  be  good  that  would  be 
rejected  by  a  bank,  because  they  might  not  know  all 
about  it ;  but  the  principle  nevertheless  holds,  that  a 
mechanic  would  do  better  not  to  touch  credits  that  would 
be  rejected  by  a  bank,  unless  he  can  convert  it  into 
cash,  or  value,  in  some  other  way.  All  these  various 
propositions  are  of  but  little  consequence  in  gaining  an 
independence,  or  a  fortune  ;  there  is  still  something  more 
to  do,  which  will  be  explained  under  another  head. 

An  inordinate  desire  to  make  is  the  cause  of  loss,  be- 
cause people  take  risks  of  values  of  credits,  in  the  hope 
that  they  will  get  their  pay ;  and  a  paradox  results,  that 
will  be  useful  to  the  money-maker :       / 

He  who  makes  money  the  slowest,  makes  it  the  fastest ; 
He  who  makes  it  the  fastest,  makes  it  the  slowest. 

And  another,  quite  as  certain  : 

He  who  walks  early,  will  ride  late  ; 
He  who  rides  early,  will  walk  late. 


174  How  to  make  Money. 


CHAPTER   XII. 

RETAIL    MERCHANDIZING. 

Moral  certainty. — No  credit. — Small  losses. — Purchase  well. — Sen- 
tinels.—  One  price. — Catalogue  of  qualities. — General  beha- 
vior.— Pleasant  manners.— Repulsive  manners. — Example  in 
Boston. — Influence  of  acts. — Two  cheated. — Advertisemens. — 
Expert  salesman.  —  What  he  wants.  —  Defects  explained. — 
Trifling  attentions. — Draw  custom. —No  excuse  for  failure. — 
Bargains. — Divide. — Small  store. — Profits  per  day. — Results. — 
Money  in  business. — Taken  out  to  speculate. — Loss  dead  cer- 
tainty.—Causes  of  failure. — General  principles. — Be  polite. — 
Please  everybody. — Everybody  your  friend. — Walking  adver- 
tisement.— Brings  dollars. — At  all  hazards. — Old  adage. — True 
philosophy. —  Failing  don't  pay. 

There  is  no  department  of  trade  in  which  there  is  a 
moral  certainty  of  success,  except  in  the  retail  trade,  if  pro- 
perly and  judiciously  carried  on.  The  wholesaler  is  more 
or  less  compelled  to  credit,  while  the  retailer  can  always 
sell  for  cash.  He  may,  to  be  sure,  have  unsalable  and  un- 
seasonable goods  left  over,  on  which  there  may  be  a  small 
percentage  of  loss  ;  but  this  amounts  to  nothing  when 
compared  with  the  loss  of  a  bill  or  note  of  hand  by  the 
wholesaler.  While  the  wholesaler  has  to  look  out  as 
well  for  purchases  as  for  sales,  the  retailer  has  but  one 
great  care,  and  that  is  to  purchase  well.  For  it  is  a 
quaint  saying  "that  goods  well  bought  are  half  sold." 
While  the  one,  to  make,  has  to  stand  sentinel  over  his 
credits,  the  other  has  to  stand  sentinel  over  his  purchases. 


How  to  make  Money.  175 

The  extent  to  which  this  is  well  done  in  both  instances 
will  determine  the  loss  or  gain  to  both  parties. 

A  retailer  should  have  but  one  price,  and  if  the  goods 
will  not  sell  at  that,  mark  them  down  till  they  do.  This 
gives  dignity  to  his  establishment  and  confidence  in  the 
buyers,  as  many  are  not  acquainted  with  prices,  and  if 
they  see  they  are  fixed,  presume  that  the  marked  profit 
is  a  fair  one.  A  skilful  retailer  must  possess  a  catalogue 
of  qualities  which  are  not  necessary  for  the  wholesaler. 
The  intercourse  with  customers  is  extensive  and  varied  ; 
he  has  to  deal  with  every  grade  of  intellect,  knowledge, 
fairness  and  honesty.  More  generally  depends  on  his 
behavior  and  manner  than  on  the  quality  of  his  goods. 
There  is  no  one  quality  that  commands  custom  and 
brings  profit  so  quick  to  a  retail  store,  and  so  certainly,  as 
pleasant  manners.  It  is  the  magnet  which  points  to 
fortune.  It  is  more  valuable  than  paid-for  advertise- 
ments, and  quite  as  attractive  as  low-priced  or  cheap 
goods. 

There  is  a  mannerism  assumed  by  some,  of  repulsive- 
ness  and  indifference,  by  which  they  fancy  the  customer 
will  be  made  to  take  hold  more  sharply.  It  may  prove 
successful  at  times  ;  but  such  rash  experiments  will  not 
bring  back  the  customer  who  finds  afterwards  that  some- 
how he  was  impelled,  if  not  forced,  into  buying.  The  bar- 
gain may  have  been  saved,  but  the  customer  is  lost. 
Nothing  can  be  more  destructive  to  the  interests  of  an 
establishment  than  such  time-serving  operations.  A  lady 
in  Boston  gave  the  following  account  of  the  bad  manners 
of  some  retailers  in  that  city : 

"  Some  stores  in street  are  noted  and  avoided, 

for  the  impertinently  familiar  manner  which  the  clerks 

8 


176  How  to  make  Money. 

think  proper  to  adopt  towards  their  lady  customers. 
When  a  lady  goes  into  the  store  in  search  of  some  article 
that  she  is  in  want  of,  as  soon  as  the  gentleman  sees 
her,  he  comes  forward,  makes  a  grimace,  pulls  up  his 
shirt  collar,  runs  his  fingers  through  his  hair,  and  as- 
sumes an  air  of  easy  familiarity  that  is  quite  refreshing 
to  look  upon.  It  is  true  he  may  not  have  much  sense, 
but  then  he  has  a  wealth  of  smiles ;  indeed,  to  listen  to 
his  conversation  with  his  victimized  customer,  a  by- 
stander might  come  to  the  conclusion  that  he  was  pro- 
prietor of  the  establishment,  and  the  lady  had  made  the 
article  in  question  a  mere  excuse  for  a  morning  call ; 
this  is  annoying,  but  in  this  case  one  can  leave  the  ar- 
ticle, and  walk  out.  But  there  is  one  retail  store  in  this 
city  that  is  a  perfect  trap — once  in,  it  is  impossible  to  get 
out ;  if  the  article  does  not  suit  you,  you  are  worried  and 
talked  at ;  if  you  attempt  to  move  towards  the  door,  you 
are  run  after  and  brought  back  ;  if  you  tax  your  genius  to 
give  a  most  unmistakably  minute  description  of  what 
you'di?  want,  the  reply  is,  '  Oh,  yes,  madam,  in  the  back 
store ;  if  you  will  walk  back,  we  have  exactly  the  article 
you  describe.'  And  so  they  get  you  further  in  ;  after 
looking  about  on  the  shelves,  they  profess  to  have  found 
the  object  of  their  search,  and  down  comes  the  very 
opposite  of  anything  you  ever  wished  to  possess.  After 
making  half-a-dozen  fruitless  attempts  to  reach  the  street 
door,  and  being  each  time  perseveringly  caught  and 
brought  back,  you  give  it  up,  and  become  submissive  and 
willing  to  buy  anything  they  wish  you  to,  making  at  the 
same  time  a  firm  resolve — as  you  see  your  money  going 
for  things  you  don't  know  what  to  do  with — that  if  you 
live  to  be  as  old  as  Methuselah,  you  will  never  enter  that 
store  again." 


How  to  make  Money.  177 

It  is  quite  too  common  among  this  class  of  traders  to  act 
as  though  the  sale  or  operation  in  hand  was  to  have  no  in- 
fluence beyond  the  moment.  This  is  a  fatal  error.  It  is 
not  uncommon  in  other  walks  of  life,  but  is  more  common 
in  the  interchange  of  articles.  Such,  laugh  and  chuckle 
at  the  ignorance  of  the  purchaser,  and  commend  them- 
selves for  having  sold  a  poor  article  at  the  price  of  a  good 
one.  There  are  two  cheated  in  every  such  operation — 
the  purchaser  and  the  seller ;  the  one  of  his  money  and 
the  other  of  a  portion  of  his  trade.  Nor  does  the  cheat 
stop  with  the  simple  loss  of  the  trade  of  the  individual, 
but  he  becomes  a  walking  and  talking  advertisement  of 
the  trader's  bad  character,  and  deters  others  from  hazard- 
ing what  he  has  lost. 

To  be  an  expert  and  popular  salesman  requires  study 
and  careful  drilling  both  in  language  and  in  manners. 
To  be  too  verbose  or  persuasive  beyond  bounds  will  dis- 
gust. The  main  point  is  to  impress  the  customer  that 
you  are  endeavoring  to  sell  him  what  it  is  his  interest  to 
buy,  for  that  is  the  interest  of  the  seller.  By  this  means 
you  can  approach  his  feelings  more  nearly,  and  he  will 
have  confidence  in  your  recommendation  and  in  your 
opinion,  for  he  well  understands  the  seller  knows  more 
about  the  value  of  goods  than  he  does,  or  possibly  can 
know.  If  there  are  defects  or  imperfections  in  them, 
tell  him  frankly  of  them,  for  if  he  finds  them  out  after- 
wards, you  are  sure  to  lose  more  than  you  may  have 
gained  in  the  particular  operation.  Trifling  attentions, 
which  might  seem  of  no  importance  in  themselves,  please 
the  customer,  and  though  it  may  not  bring  the  dollar  then, 
it  is  sure  to  do  so  sooner  or  later.  Money  is  made  in 
this  way  by  every  action  and  word  that  interests  the  cus- 
tomer in  you  and  your  establishment. 


178  How  to  make  Money. 

With  these  general  suggestions  carefully  alluded  to, 
there  is  no  excuse  for  failure  in  the  retail  trade,  supposing 
always  that  the  buyer  for  the  establishment  fully  under- 
stands the  business  and  does  not  buy  more  stock  than 
his  capital  warrants.  Rapid  sales  with  small  profits  will 
soon  tell.  If  you  are  lucky,  and  by  chance  get  bargains 
in  purchasing,  divide  with  your  customers,  for  you  must 
always  bear  in  mind  that  their  interests  are  your  inter- 
ests ;  and  if  your  business  is  known  to  be  conducted  on 
this  plan,  they  will  be  constantly  flocking  to  your  store 
to  see  if  you  have  had  good  luck  in  this  way,  for  they 
are  as  anxious  to  pick  up  bargains  as  you  possibly  can 
be.     By  this  means  you  will  sell  other  goods. 

It  could  be  shown  by  facts,  that  the  kind  of  business 
is  of  very  little  importance ;  one  is  about  as  good  as 
another,  though  some  can  be  more  extended  than  others. 
A  small  beginning  is  better  than  a  large  one,  on  the 
same  principle  that  it  is  always  better  to  have  too  small 
a  store  to  do  your  business  in  than  too  large  a  one.  Let 
us  look  a  little  at  the  profits  and  the  results,  so  that  you 
can  know  when  you  are  doing  well.  If  you  make  on  the 
start  sure,  every  day,  three  dollars,  for  313  working  days, 
over  and  above  all  losses  by  depreciations  and  expenses, 
you  are  making  more  than  the  average  of  wholesale  mer- 
chants ;  that  is,  if  you  make  it  and  keep  it.  This  small 
sum,  if  increased  to  six  dollars  the  second,  to  nine  dollars 
the  third,  to  twelve  dollars  the  fourth  year,  and  so  on, 
will  make  in  ten  years,  if  improved  in  your  own  business 
at  8  per  cent.,  a  large  sum  of  money.  If  the  daily  earn- 
ings should  be  three  dollars  per  day,  gives  $13,980. 
•If  six  dollars,  gives  $27,961.  If  twelve  dollars,  gives 
$55,922.  If  twenty  dollars,  gives  $93,205.  If  the 
money  was  kept  in  the  business,  and  the  business  well 


How  to  make  Money.  179 

managed,  it  would,  in  all  probability,  increase  faster  than 
8  per  cent,  per  annum,  and  in  order  to  secure  the  earn- 
ings and  make  them  work  to  the  best  advantage,  this 
course  would  be  the  proper  one  to  pursue. 

But  the  same  trouble  generally  attends  this  as  it  does 
other  businesses.  Tradesmen  are  apt  to  take  money  out 
of  their  business  and  invest  it  in  other  modes  of  money- 
making.  If  they  do,  they  encounter  the  risk  of  doing 
that  which  they  do  not  understand,  and  loss  results,  to 
a  dead  certainty.  Just  here  is  all  the  trouble.  If,  how- 
ever, the  retailer  has  more  money  in  his  business  than 
he  wants,  if  he  can  buy  all  the  stock  he  wants  for  cash 
and  still  have  cash  over,  it  must  be  set  at  work  to  earn. 
The  mode  of  doing  this  will  be  explained  hereafter. 

Causes  of  failure  may  be%stated  to  be  generally  : 

First. — Want  of  knowledge  of  the  suitableness  and 
value  of  the  goods  purchased.  » 

Second. — Too  much  expense  for  the  amount  of  busi- 
ness done. 

Third. — Want  of  care  ;  to  know  how  everything  stands. 

The  general  principles  which  insure  success  are : 

Be  polite. — Work  at  clerking  till  you  save  enough  to 
start  on. 

Be  polite. — Owe  no  man  a  dollar. 

Be  polite. — Trust  nothing,  because  you  can  sell  without. 

Be  polite. — Rise  early  and  work  late. 

Be  polite. — Know  the  market  value  of  what  you  buy 
and  its  demand. 

Be  polite. — Keep  slow  goods  moving. 

Be  polite. — Be  honest,  economical,  and  industrious. 

Be  polite. — Take  care  of  that  which  needs  care. 

Be  polite. — Cheap  bought,  easy  sold. 

Be  polite. — Keep  insured. 


180  How  to  make  Money. 

Be  polite. — Turn  all  your  keys  yourself,  if  possible. 

Be  polite. — Make  your  customers'  interest  your  own. 

Be  polite. — Keep  expenses  down ;  make  your  profits 
rise. 

Be  polite. — Catch  the  passing  penny,  then  hold  it. 

Be  polite. — Keep  your  glass,  your  stock,  and  your  con- 
science clean. 

Be  polite. — Buy  slow  ;  sell  quick. 

Be  polite. — Beware  of  your  friends,  but  not  your  cus- 
tomers. 

Be  polite. — Mind  your  own  business  ;  you  cannot  afford 
to  attend  to  another's  without  pay. 

Be  polite. — When  you  buy,  keep  one  eye  on  the  goods, 
the  other  on  the  seller. 

Be  polite. — When  you  sell,  keep  both  eyes  on  the 
buyer. 

Be  polite. — Few  words  and  many  pennies  ;  time  is 
money. 

Be  polite. — A  failure,  if  honest,  is  capital  by  experi- 
ence ;  start  anew,  don't  lose  it.  « 

By  the  use  of  these  general  principles,  it  is  very  easy 
to  get  business  ;  and  this  is  all  that  is  necessary  to  make 
money.  Remember,  that  to  make  every  one  who  enters 
your  place  of  business  friendly  to  you,  and  interested  in 
you,  is  to  have  a  walking-advertisement  that  will  bring 
you  untold  dollars.  The  sum  you  make  on  a  sale  is  of 
not  the  slightest  consequence  in  proportion  to  this. 
Save  your  customer,  and  his  interest,  at  all  hazards,  and 
never  let  him  go  away  dissatisfied,  no  matter  what  it 
costs  ;  you  will  make  money  by  the  operation.  The  old 
adage  of  "  Throw  a  sprat  to  catch  a  mackerel,"  should  be 
studied  in  its  true  philosophy  ;  and  no  matter  what  the 
business  may  be,  as  in  fishing,  the  principle  pays  well  in 


How  to  make  Money.  181 

money.     If  you  are  after  that,  your  feelings  should  never 
be  allowed  to  stand  between  you  and  your  object. 

There  are  many  principles  found  in  the  other  parts  of 
this  book,  that  apply  equally  to  this  trade  as  they  do  to 
others  ;  and  although  what  has  been  said  under  this  head 
may  be  of  advantage,  there  are  many  others  that  could 
be  said  equally  so. 


1 82  How  to  make  Money. 


CHAPTER  XIII. 


MANUFACTURING    BUSINESS. 


Important  stand. — Phases  of  labor. — Imperfect  arrangements.— 
Sinks  capital. — As  a  rule  successful. — Two  name  credits. — 
Guarantee. — Himself  judging  credits. — Not  so  much  made. — 
Combination  of  qualities. — A  maximum  outlay. — Fortunes  ex- 
pended.— All  things  to  correspond. — Comfort  and  ease. — Slave 
to  business. — Manufacturers  and  merchants  laugh. — Large  re- 
sults.— What  becomes  of  it. — Profit  and  loss  account. — Might 
be  avoided. — Such  financiering.  —  Robin  is  alive. — Power  of 
individual  judgment. — Pile  of  gold  or  bank  bills. — Reputed 
credit  is  taken. — Snug  business. — Under  control. — Happiness 
and  most  money. — Calculations  of  expenditures. — Talent  and 
judgment  ahead. — Back-door  leak. — Wrong  end  first. — Cause 
of  failure. — Grand  pitfall. — All  general  principles  applicable. — 
What  paper  to  take. — Wonder  why  they  do  not  thrive. — Leak 
in  the  bottom. — Male  and  female  operatives. — Principals  and 
operatives  compared. — One  as  much  chance  as  the  other. — > 
Operative  best  chance  for  independence. 


By  the  course  of  events,  this  branch  has  assumed  a  very 
important  stand  among  other  businesses,  and  large 
amounts  of  money  are  made  by  it,  both  by  the  employer 
and  the  employed.  It  gives  great  scope  for  genius  in 
labor-saving  machinery,  and  to  the  skilful  mechanic  in 
their  construction.  It  is,  also,  one  of  the  means  of 
making  money  work  to  advantage,  by  its  use  as  capital, 
and  generally  may  be  regarded,  in  all  its  phases  of  labor 
or  its  products,  as  a  money-maker.  The  causes  of  failure 
in  this  business  are  the  same,  generally,  as  the  causes  of 
failure  in  other  departments  of  credit,  or  interchanging 


How  to  make  Money.  183 

of  products.  The  trouble  does  not  lie  in  the  ability  to 
produce  or  obtain  a  market  for  the  products.  Failures, 
or  losses  from  such  causes,  are  rare.  The  manufacturer 
frequently  sinks  capital,  in  the  first  outlay  in  buildings 
and  machinery,  from  the  want  of  knowledge  of  what  he 
does  require  for  his  purposes.  But  if  he  understands 
just  what  he  requires  to  accomplish  his  ends,  the  busi- 
ness, as  a  general  rule,  is  successful,  and  the  results  in 
money  gained  are  generally  successful  also. 

The  general  results  to.  the  owner  are  more  complete 
than  in  most  other  business  ;  more  successful,  as  a  rule, 
than  wholesale  merchandizing,  or  the  mechanical  trader, 
where  these  two  latter  depend  upon  their  own  judgment 
of  credits  for  their  sales.  The  reason  of  this  is  appa- 
rent. Manufacturing  is  generally  carried  on  at  a  remote 
or  inconvenient  place  for  sale,  and  the  manufacturer  is 
compelled  to  employ  a  commission-house  to  accomplish 
this.  The  commission-house  charges  a  commission  on 
sales,  and  guarantee  for  credits  given.  In  this  way  the 
manufacturer  has  two  names,  instead  of  one,  as  is  the 
general  case  with  the  wholesale  merchant  and  mecha- 
nic. Fewer  losses  result  to  him,  as  the  commission- 
merchant,  who  generally  charges  2\  per  cent,  for  guaran- 
tee, is  more  cautious  in  his  credits,  for  so  small  a  profit, 
than  the  wholesale  merchant  or  mechanic,  who  makes 
his  fifteen  or  twenty  per  cent. 

When  the  manufacturer,  however,  undertakes  to  make 
his  own  sales,  and  assumes  to  judge  of  the  value  of  his 
credits,  he  stands  about  the  same  chances  of  success  that 
others  do  who  pursue  the  same  course  ;  without  he  is  in 
the  market  constantly,  himself,  and  sees  to  the  standing 
of  his  customers,  and  is,  in  every  sense,  a  stirring  busi- 
ness man,  he  has  but  little  opportunity  of  gaining,  and 

8* 


184  How  to  make  Money. 

an  almost  certain  chance  of  loss.  But  it  not  unfre- 
quently  occurs  that  the  business  is  of  such  a  nature  that 
it  requires  the  establishment  of  an  exclusive  house  for 
the  sale  of  the  commodities  manufactured.  In  such  a 
case,  it  becomes  a  combined  manufactory  and  mercan- 
tile business,  and  if  conducted  with  skill,  is  almost  uni- 
formly successful. 

To  make  the  most  money  out  of  it,  requires  a  peculiar 
combination  of  qualities  in  the  management,  and  the 
widest  range  of  special  requirements,  namely  :  The  high- 
est grade  of  mechanical  skill,  to  adapt  proper  machinery  ; 
a  superior  knowledge  of  the  wants  to  be  supplied  ;  a  con- 
centrated and  vigorous  action  throughout  the  manufactu- 
ring department,  and  in  the  selling  department ;  mercan- 
tile skill  as  a  wholesale  or  retail  dealer,  as  the  nature  of 
the  business  may  require.  It  would,  therefore,  seem  to 
combine  almost  all  other  trades  and  businesses  within 
itself;  demanding,  also,  that  they  should  work  harmoni- 
ously and  perfectly  together. 

It  is  apparent,  then,  that  it  is  a  business  requiring  the 
utmost  care  to  be  successful ;  that  is,  to  make  the  larg- 
est success  possible.  Nor  are  there  many  men  who  take 
the  trouble,  when  they  are  about  entering  into  or  esta- 
blishing a  manufactory,  to  investigate  the  matter,  and 
know  just  what  they  may  be  able  to  do  as  their  maxi- 
mum, and  make  their  machinery  accordingly ;  but  they 
start  by  degrees,  putting  up  one  thing  one  year,  and  pull- 
ing it  down  the  next,  because  not  large  enough  ;  and 
again  pull  it  down  the  next,  and  put  up  something  still 
larger ;  and  so  go  on,  from  year  to  year,  till  at  length 
they  get  a  maximum  machine  that  will  do  the  maximum 
work. 

How  many  instances  can   every  reader  call    to   his 


How  to  make  Money.  185 

mind  of  this  kind,  where  even  the  buildings  themselves 
are  abandoned  and  new  ones  built,  because  a  proper 
foundation  was  not  laid  for  increasing  wants  at  the  begin- 
ning. It  may  be  safely  stated  that  fortunes  are  thus  ex- 
pended in  the  course  of  a  few  years  by  just  such  want 
of  forecast.  Few  men,  if  any,  strike,  high  enough  ;  and 
in  knowing  just  whereto  strike  the  most  money  is  made. 

As  a  general  rule,  they  commence  moderate,  and  as 
the  business  increases  they  tear  down  and  build  over, 
and  thus  go  on  increasing  and  increasing  till  it  becomes 
too  large  for  profit  or  too  unwieldy  for  success,  and  some 
unforeseen  event  leads  to  embarrassment  or  failure. 
Commence  with  a  view  to  a  fair  business  as  a  maximum, 
make  all  things  to  correspond  to  it,  and  when  it  is  at- 
tained be  satisfied  and  reap  the  benefits  in  a  thrifty  and 
steady  business  always  under  control.  When  you  get 
money  enough  pay  all  your  bills  in  cash,  and  if  there  is 
a  surplus,  invest.  Comfort  and  ease  will  attend  you,  and 
prosperity  and  an  early  fortune  will  be  the  reward. 

Business  should  be  looked  at  as  an  occupation  and  a 
means  of  support  first,  and  an  independence  or  a  fortune 
afterwards.  You  may  as  well  be  a  slave  in  another  way 
as  be  one  to  your  business.  Nor  is  the  large  business 
the  sure  road  to  fortune ;  it  is  the  most  insecure  route. 
The  sure  road,  with  comfort,  is  to  make  slow  and  sure, 
and  always  be  your  own  master ;  and  you  have  but  to 
look  at  the  tables  of  earnings  to  see  how  moderate  the 
income  requires  to  be  to  accomplish  with  ease  what  you 
desire.  A  large  manufacturer  would  probably  laugh,  as 
the  wholesale  merchant  would,  that  fifty  dollars  a  day 
saved  and  improved  is  a  very  heavy  amount,  and  more 
than  one  in  ten  makes  in  the  long  run.  Even  this  small 
amount  in  twenty  years  of  business,  improved  at  6  per 


1 86  How  to  make  Money. 

cent.,  would  be  $590,015  ;  if  at  7  per  cent,  $661,606 
How  many  large  manufacturers  do  this  ?  In  truth,  how 
few  make  their  $5,000  per  annum  ?  For  this  income 
yearly  improved  in  like  manner  reaches  respectively 
$188,450 — $211,318 — only  $15.97  per  day.  What  manu- 
facturer of  any  note  could  not  make  this,  and  have  it 
clear  at  the  end  of  twenty  years  ? 

These  are  large  figures  for  the  ordinary  run  of  manufac- 
turers, who  suppose  themselves  worth  that,  or  even  more 
any  day  in  the  year,  but  how  many  come  out  after  twenty 
years  of  business  with  this  amount  of  clear  cash  be- 
sides their  operating  gear  and  traps  ?  Very  few  ;  and  why 
not  more  ?  Any  manufacturer  pretending  to  do  business 
would  sneer  at  the  idea  of  making  but  $16  per  day,  with 
a  manufactory,  tools,  and  men.  So  they  might,  and  they 
do  make  more  ;  but  what  becomes  of  it — that  is  the  ques- 
tion ?  Lost  in  bad  debts  ;  spent  in  extensions  ;  lost  in 
side  operations  ;  lost  by  indorsing ;  lost  by  lending  ; 
and  lost  or  spent  in  a  hundred-and-one  ways. 

Let  any  manufacturing  concern  in  the  country  that  has 
run  10  or  20  years  but  look  back  upon  its  books  and  ex- 
amine the  profit  and  loss  account,  and  the  owner  will  be 
satisfied.  Then  let  him  examine  closely,  and  see  if  all  these 
losses  and  expenditures  might  not  have  been  avoided; 
if  not  all,  at  least  most  of  them.  He  would  be  taught 
a  lesson  which,  if  he  improved,  would  make  him  a  rich 
man,  if  he  was  not,  in  ten,  rather  than  twenty  years. 
Without  he  was  a  prodigy  in  his  business,  he  would  find 
that  his  judgment  upon  credits  alone  had  cost  him  a  for- 
tune. That  on  this  one  item,  instead  of  selling  for  short 
paper  and  a  good  indorser  at  a  less  profit,  he  had  been 
unwise  in  parting  with  his  substance  for  single  name 
paper,  which  every  one  in  trade  knows  the  value, of 


How  to  make  Money.  187 

sooner  or  later.  Such  financiering  to  make  money  is 
like  the  child's  game  of  lighting  a  splinter  of  wood  and 
passing  it  from  hand  to  hand,  saying : 

"  Eobin  is  alive,  and  live  like  to  be, 
If  he  dies  in  my  hand  you  may  saddle-bag  me." 

In  other  words,  most  business  men  take  risks  of  credit 
because  others  do  the  same,  and  it  requires  a  well  trained 
determination  not  to  be  influenced  by  such  action. 
More  money  has  been  lost,  or  not  made,  by  assuming 
credits  than  from  any  other  cause.  In  fact,  a  business  man 
may  be  sure  he  is  liable  to  error  in  this  respect  when  he 
does  not  lay  out  all  the  power  of  his  own  individual  judg- 
ment. As  has  been  remarked  before,  he  is  never  safe  in 
making  a  credit  until  he  has  considered  how  much  labor 
has  been  spent  to  obtain  the  amount  he  proposes  to  risk, 
and  if  the  profit  be  the  temptation,  he  may  be  morally 
sure  he  is  going  to  make  a  mistake.  It  is  a  good  rule  to 
pile  up  the  amount  in  gold,  or  in  bank  bills,  upon  a  table, 
having  first  obtained  all  the  information  upon  the  value 
of  the  credit  that  can  be  obtained  by  any  possible  means, 
and  then  make  a  decision.  In  about  seven  or  eight  cases 
in  ten,  he  will  conclude  to  take  the  risk,  otherwise  he 
will  probably  take  twelve  out  of  every  fifteen,  and  proba- 
bly more. 

Nothing  is  so  profitable  in  the  long  run  as  a  snug, 
well  managed  cash,  or  close  credit  business.  If  the 
goods  made  are  always  good,  they  will  be  always  salable, 
either  for  cash  or  good  indorsed  paper,  or  paper  about 
which  there  is  little  or  no  risk.  The  manufacturer  has 
less  labor  to  perform  to  make  the  same  amount  of  money. 
He  is  happy  and  comfortable  in  his  business  and  in  his 
home  ;    buys    to  better  advantage  and  sells   to    bettei 


1 88  How  to  make  Money. 

advantage  ;  is  strong  wherever  he  is  felt,  and  when  sales 
are  dull  in  the  market  he  can  accumulate  stock  without 
weakening  or  cramping  himself.  It  is  always  better  to 
have  your  goods  inquired  for,  and  sometimes  not  be 
found,  than  to  have  them  always  found  when  inquired  for 
You  will  make  more  money. 

There  is,  too,  money  made  by  considering  every  expen- 
diture, and  seeing  whether  it  can  be  lessened  or  avoided. 
Things  are  often  replaced  by  new  ones  when  the  old 
ones  will  do,  though  possibly  not  quite  so  well  ;  and  it 
must  be  the  subje£t  of  close  calculation  to  see  when  that 
moment  arrives.  Where  the  new  are  necessary  for  pro- 
fit, what  is  done  for  show  or  display  is  generally  a  dead 
loss  ;  the  same  amount  taken  off  the  profit  on  your  goods 
will  insure  sales  for  cash  or  first  rate  values  on  credit. 

In  truth,  it  may  be  said  that  vigorous  action  and  close 
attention  will  make  money  in  this  department  of  business 
fast.  There  is  no  difficulty  in  managing  this  part  of  the 
business,  and  all  the  talent  and  judgment  in  the  concern 
will  do  best  and  make  the  most  money  for  it,  not  here,  but 
in  close  attention  as  to  what  is  got  for  the  goods  when 
made  and  sold. 

As  most  trading  is  now  or  has  been  carried  on,  the 
talent  manages  to  get,  and  pay,  while  the  goods  slip  out 
the  back-door  in  charge  of  subordinates.  If  the  matter  be 
just  reversed,  success  will  follow.  For  if  there  is  any 
one  principle  well  established  in  trading  it  is  this,  that 
almost  all  failures  are  attributable  to  losses  by  those  to 
whom  valuables  or  goods  are  sold  ;  not  by  store  expenses, 
not  by  depreciation  of  goods,  not  by  buying  goods,  not 
by  having  too  much  on  hand.  Isolated  cases  there  may 
be,  where  failures  result  from  some  one  or  other  of  these 
causes,  but  they  are  so  rare  that  they  are  not  worth 


How  to  make  Money.  i8g 

noticing,  whereas  the  other  is  the  grand  pitfall  into  which 
traders  plunge  themselves. 

All  the  general  principles  of  banking,  wholesale  mer- 
chandizing, retail  merchandizing,  and  of  mechanical  busi- 
ness, in  the  previous  chapters,  are  more  or  less  applicable 
to  this  business.  In  that  of  banking  may  be  found  a  valu- 
able lesson  for  any  manufacturer  to  follow.  If  he  goes  to  a 
bank  to  get  money  on  his  note  he  can  answer  whether  he 
can  get  it  without  an  indorser.  If  he  can  he  is  lucky, 
and  is  in  good  credit.  Are  the  goods  you  sell  less  valu- 
able than  their  money  ?  If  they  are  as  valuable  then  sell 
them  for  as  good  paper  as  your  own,  if  the  bank  will  take 
it  without  indorsement ;  but  if  they  will  not,  then  sell 
them  for  as  good  paper  as  you  give  the  bank,  and,  rely 
upon  it,  you  are  nearer  being  rich  suddenly  than  you  ever 
were  before. 

Of  course  there  are  a  few  in  every  department  of  trade 
who  do  conduct  their  business  upon  such  principles,  and 
who  are  successful ;  but  those  that  do  not,  wonder  why 
they  are  not  equally  thrifty.  They  work  hard,  think  they 
are  industrious  and  enterprising,  and  they  are  so  in 
reality  ;  but  while  they  pour  the  dollars  into  their  coffers 
rapidly,  they  about  as  rapidly  disappear.  They  keep 
watch  of  the  top,  but  pay  little  attention  to  the  bottom, 
where  the  real  leak  occurs. 

This. business  affords  employment  to  a  large  portion 
of  our  population,  male  and  female,  giving  them  an  oppor- 
tunity to  gain  an  early  independence,  or  if  their  industry 
and  savings  are  continued,  a  fortune.  If  they  procure 
constant  employment  and  good  wages,  small  savings  well 
improved,  will  soon  give  a  large  amount.  All  the  prin- 
ciples laid  down  as  the  best  means  of  increasing  the 
value  of  their  labor  given  heretofore,  should  be  carefully 


190  How  to  make  Money. 

attended  to,  if  they  would  accomplish  the  end  they  desire. 
And  if  general  results  are  looked  at,  the  principals  have 
no  greater  opportunity  of  making  money  than  the  opera- 
tives, for  we  will  show  an  example  by  which  this  can  be 
judged  of. 

A  manufacturer  goes  into  business  with  a  cash  capital 
of  $25,000  ;  the  operative  with  none.  The  principal  has 
to  make,  before  he  realizes  any  profit,  his  entire  expenses 
and  the  interest  on  his  capital,  before  he  is  on  an  equal 
footing  with  the  operative.  All  this,  of  course,  requires 
many  expenditures,  and  he  probably  has  much  more  in- 
terest to  pay,  over  and  above  his  capital.  But  all  such 
matters  must  come  out  of  the  profits  ;  the  interest  on 
the  capital,  and  the  capital  itself,  must  only  be  taken  as 
a  comparison.  The  interest  on  $25,000  is  $1,750,  yearly. 
Then  the  manufacturer  has  to  make,  in  20  years,  $73,968, 
simply  to  get  7  per  cent,  on  his  capital.  Suppose  the 
operative  laid  by  $2  per  day  for  the  same  time,  he  would 
have,  by  tables  of  earnings,  $26,464.  The  manufacturer 
would  have  to  make,  in  the  same  time,  $100,432,  to  have 
made,  over  and  above  his  interest  on  capital,  the  same 
amount  as  the  operative. 

When  it  is  considered  that  the  manufacturer  may  lose 
his  whole  capital,  and  make  nothing  into  the  bargain  ; 
and  if  he  does,  his  money  is  in  property,  generally,  and 
not  in  cash,  as  it  is  in  the  case  of  the  operative,  there 
would  seem  to  be  a  large  balance  in  favor  of  the  opera- 
tive, over  principals  with  small  manufacturing  capitals. 
The  operative  gains  steadily  and  securely,  with  no  risks 
except  that  of  getting  employment,  and  that  depends 
upon  himself,  while  the  principal  may  lose  all. 


How  to  make  Money.  191 


CHAPTER  XIV. 

WHOLESALE     MERCHANDIZING. 

Nothing  saved. — Startling  proposition. — Millions  made. — Capital 
lost  on  average. — Elements  of  calculation. — Banking  and  mer- 
chandizing compared. — Merchants  don't  make  7  per  cent. — Banks 
succeed,  merchants  fail. — Capitals  compared.- — Results. — More 
profit  more  loss. — Secret  of  failures. — Profits  over  7  per  cent. — - 
Manner  of  doing  it. — Auctioneers  most  successful. — Reason. — 
Double  name  paper  or  cash. — Since  i860  great  earnings. — Cause. 
— Change,  probably. — Old  story. — Examination  of  credits. — Made 
able  to  pay. — Shave  customer,  shave  yourself. — Short  indorsed 
paper. — Mode  of  crediting. — References. — Mercantile  agencies. — 
Called  reliable. — Good  as  an  auxiliary. — Not  relied  on  alone. — 
Every  item. — Mercantile  clerks. — Jobbing  merchants. — Where  the 
trouble  lies. — Ability  in  the  wrong  place. — Without  recourse. — 
Make  money  fast. — Make  one  thousand  dollars. — Rich  in  ten 
years. — Example. — Small  per  diem  earnings. — Suggestions. — 
Failure  paid  for. — Give  all  to  creditors. — Pay  for  blunder  com- 
mendable.— Good  treatment. — Makes  money. 

It  is  asserted  here  that  up  to  the  year  1862  nothing, 
comparatively,  has  been  made  in  this  branch  of  trade  in 
the  three  large  cities,  New  York,  Philadelphia,  and  Bos- 
ton. Rather  a  startling  proposition,  but  nevertheless 
true,  as  to  realized  profits.  That  is,  the  amount  of  capi- 
tal invested  has  no  more  than  been  withdrawn  as  a  total 
result,  if  it  has  that.  While  millions  upon  millions  have 
been  made,  nothing  has  been  saved  in  the  aggregate. 
Few  have  been  fortunate  enough  to  retire  at  high  tide 
and  take  with  them  round  little  fortunes.  Now,  suppose 
we  take  the  average  capital  of  wholesale  houses  during 
that  time  to  be  $50,000,  and  see  what  that  would  amount 
to  improved  at  compound  interest  at  7  per  cent,  for  an 


192  How  to  make  Money. 

average  term  of  25  years  in  business.  By  the  table,  we 
find  it  to  be  #271,500.  So  that  in  order  to  make  any- 
thing, they  must  come  out  with  more  money  than  this 
sum  being  their  capital  improved  for  twenty-five  years, 
if  they  continue  in  business  so  long.  If  the  whole  or 
the  average  do  this,  with  this  sum,  they  have  simply  made 
expenses.  This,  however,  is  far  above  the  average.  For, 
as  has  been  seen  by  the  statistics,  not  5  per  cent,  but 
what  fail  entirely. 

The  cause  of  such  failure  becomes  a  matter  of  consi- 
deration in  the  calculation  for  success.  What  are  the  ele- 
ments of  this  calculation,  and  where  are  we  to  look  for 
the  remedy  ?  This  is  the  grand  point.  Now,  why  do 
these  merchants  fail  ?  Is  it  owing  to  want  of  capital  ? 
Not  at  all ;  for  those  who  have  large  capitals,  even  as 
much  or  more  than  successful  banks,  generally  fail.  Now, 
let  us  look  what  a  bank  makes,  and  compare  it  with  what 
a  mercantile  house  makes  on  the  same  capital.  A  bank 
stands  in  good  credit,  is  considered  safe,  and  its  stock 
sought  after,  which  year  after  year  pays  7  per  cent.  A 
mercantile  house,  with  the  same  capital,  would  be  con- 
sidered as  doing  business  to  no  advantage  if  they  did  no 
more  than  divide  the  interest  on  their  capital  at  the  end 
of  the  year.  Here,  then,  is  a  paradox.  Why  is  the  mer- 
cantile house,  which  deals  in  the  same  thing  as  the  bank, 
expected  to  make  more?  The  bank  has  12  to  14  ex- 
perienced business  men,  selected  on  account  of  their  suc- 
cess, to  do  their  business,  while  the  mercantile  firm  has  one, 
two,  or  three.  The  odds  on  making  even  7  per  cent, 
seem  to  be  against  the  mercantile  house. 

The  banks,  too,  generally  succeed,  while  the  mercan- 
tile houses  generally  fail,  which  shows  that  they  do  not 
make  as  much  as  banks.     This  is  true.    Now,  let  us  sup- 


How  to  make  Money.  193 

pose  a  bank  with  $200,000  capital,  and  that  they  divide 
$14,000  to  the  stockholders,  after  paying  all  expenses. 
Suppose,  also,  we  have  a  mercantile  firm  with  the  same 
capital,  and  that  it  should  turn  its  capital  over  three 
times  a  year  ;  that  is,  should  sell  $600,000.  To  do  as  well 
as  the  bank,  they  would  have  to  divide  $14,000,  the  bal- 
ance to  go  for  expenses,  or  about  2\  per  cent,  on  sales. 
If  there  were  three  partners  doing  the  business,  each 
with  families,  as  a  safe  rule,  their  united  expenses  would 
be  $15,000,  and  store  expenses,  at  least  $10,000,  making 
the  .grand  total  to  be  made  on  sale  of  $600,000 — $39,000, 
or  6\  per  cent.  Now,  if  the  firm  lost  nothing,  they 
would,  on  this  statement,  just  clear  the  interest  on  their 
capital,  and  if  they  did  lose,  so  much  would  have  to  be 
deducted. 

But  such  an  amount  of  sales,  without  loss,  on  the  pre- 
sent system  of  doing  business,  is  impossible  ;  so  that  one 
of  two  things  must  take  place — either  they  would  not 
make  the  interest  on  their  capital,  or  they  would  have  to 
make  more  profit  in  order  to  do  it,  to  cover  losses.  Now 
the  settled  principle  in  business  is,  the  more  profit  the 
more  loss  ;  and  as  a  general  rule,  the  profit  over  the  settled 
rate  of  interest  will  be  absorbed  by  loss.  Close  around 
this  principle,  then,  lies  the  great  secret  of  mercantile 
failures.  To  ascertain  just  where  it  is,  and  what  it  is,  is 
the  great  desideratum. 

As  goods  are  sold,  every  one  acquainted  with  business 
of  this  kind  knows,  that  the  average  profit  on  sales 
amounting  to  $600,000  is  more  than  $39,000,  and  that'  at 
a  low  calculation  it  reaches  from  $60,000  to  $90,000.  This 
result  would  be  eminently  satisfactory  if  there  were  no 
losses  ;  for  the  net  profit  after  paying  expenses  and  interest 
on  money,  on  the  supposition  we  have  made,  would  amount 


194  How  to  make  Money. 

to  from  $21,000  to  $51,000,  say  take  the  average  $36,000 
If  the  firm  did  this  business  for  20  years,  we  should  have 
by  the  table  of  earnings  the  sum  of  $1,521,826;  if  the 
earnings  were  improved  at  7  per  cent.,  or  if  continued 
for  25  years,  the  sum  of  $2,357,838  ;  in  like  manner,  if 
for  30  years,  the  sum  of  $3,417,993  ;  if  for  40  years, 
$7,547,062  ;  or,  if  for  50  years,  $15,526,069.  It  must  be 
remembered  that  this  is  over  and  above  the  interest  on 
the  capital,  $200,000,  and  over  and  above  what  a  bank 
would  make  in  the  same  time,  profits  improved  at  7  per 
cent,  on  the  same  capital,  if  it  divided  7  per  cent,  as  its 
profits. 

Now,  is  there  no  way  that  the  merchant  can  secure  a 
part,  if  not  the  whole  of  this  difference  ?  It  is  believed 
that  there  is,  and  that  will  entirely  depend  upon  the 
manner  in  which  the  business  is  done.  If  he  made  no 
losses  the  thing  could  be  accomplished,  for  there  is  no 
difficulty  in  making  the  sum  of  profits  by  sales.  Then 
the  whole  difficulty  lies  in  the  losses  incurred.  How  can 
these  be  prevented  ?  In  the  answer  to  this  question  lies 
the  success  or  failure. 

The  most  successful  merchants,  as  a  class,  are  the 
auctioneers.  Why?  Because  they  do  their  business 
nearer  the  principles  of  banking  than  other  merchants. 
They  sell  on  shorter  credits  and  for  indorsed  paper,  or 
for  cash.  Their  commissions  are  small  compared  with 
the  merchant's  profits,  and  they  demand  and  get  security 
accordingly.  From  these  facts,  and  a  general  considera- 
tion of  the  subject,  cash  sales  or  sales  for  short  and  in- 
dorsed paper,  will  give  the  required  results,  provided  due 
care  is  taken  in  the  selection. 

Since  i860,  mercantile  business  has  been  done  more 
for  cash  and  short  credit,  and  the  result  is  apparent  to 


How  to  make  Money.  195 

any  one.  There  never  has  been  a  time  in  this  country 
when  merchants  have  been  in  a  more  prosperous  and 
healthy  condition.  This  will  not  in  all  probability  re- 
main so  long.  The  inordinate  desires,  and  the  necessity, 
from  expenses,  to  make  more,  will  induce  longer  credits, 
and  hence  larger  profits,  thereby  giving  the  buyer  a 
chance  to  use  the  proceeds  of  goods  in  side  operations, 
or  cripple  himself  by  the  increased  price  of  goods,  till 
the  same  old  story  is  re-enacted  for  the  thousandth  time 
— loss  all  around. 

The  general  impression  is  among  merchants,  that  if 
they  can  secure  a  customer  and  sell  him  at  a  large  profit 
and  get  his  note,  and ,  it  is  said  to  be  good,  here  the 
matter  ends.  As  the  very  foundation  of  the  security  of 
the  note,  the  merchant  should  see  that  his  customer  not 
only  got  his  goods  of  him  at  a  price  that  he  could  make 
ready  sale  of  them,  but  that  he  bought  of  other  good 
houses  doing  business  upon  the  same  principles — know 
all  that  he  buys,  and  of  whom,  and  when  due.  In  other 
words,  see  to  it  that  your  customer  is  made  able  to  pay  by 
a  judicious  and  careful  selection  of  his  whole  stock.  To 
shave  a  customer  is  but  to  shave  yourself.  Look  at  the 
prospects,  the  profits  of  your  customer,  as  though  they 
were  your  own  ;  for  they  will  turn  out  so  in  the  end, 
whether  you  attend  to  it  or  not. 

This  is  one,  and  the  surest  way,  to  make  your  note 
good  and  have  it  paid ;  but  if  the  customer  feels  that 
this  is  more  than  he  wishes  to  communicate,  sell  him,  if 
you  can,  for  good  indorsed  paper,  on  short  time,  or  for 
cash,  by  taking  off  a  liberal  per  cent.  You  will  probably 
lose  by  selling  him  otherwise.  These  seem  to  be  strin- 
gent terms,  but  it  is  easy  to  show  from  statistics  and  ex- 
perience that  it  will  make  most  in  the  end. 


196  How  to  make  Money. 

The  usual  mode  of  giving  credits  by  mercantile  firms  i? 
to  drum  in  any  stranger  that  can  be  found  at  any  hotel, 
and  sell  him  a  bill  of  goods,  making  the  most  profit  thai 
can  be  stuck  on.  After  this  is  done  he  is  asked  for  his 
references,  and  the  salesman,  a  clerk,  and  sometimes  the 
porter,  is  started  off  to  make  the  inquiries.  Of  course  they 
are  all,  as  a  general  rule,  satisfactory  ;  for  the  buyer  would 
not  send  you  to  any  one  who  would  not  speak  well  of  him. 
Generally  they  are  merchants,  who  are  selling  the  same 
individual,  and  their  interest  lies  in  your  selling  him,  too. 

Then  resort  is  had  to  a  mercantile  agency — to  be  sure 
the  best  place  where  you  can  get  what  is  called  reliable 
information,  and  they  are  usually  valuable  on  the  higher 
grades  of  credit.  But  if  you  take  their  recommendations 
you  look  to  the  amount  of  your  own  sale  as  compared 
with  his  capital  or  business  ability,  but  know  nothing  of 
how  much  he  is  buying  on  his  capital,  at  the  time,  of  oth- 
ers ;  so  that  he  may  be  good  for  a  small  purchase  made  of 
you,  but  if  you  knew  he  was  purchasing  at  the  same  time 
$50,000  on  a  capital  of  $5,000,  you  would  probably  not 
sell  him.  So  that  such  information  is  not  reliable  as  a 
means  of  giving  credits.  It  may  be  an  auxiliary,  but 
should  never  be  relied  on  alone.  No  intelligent  opinion 
can  be  arrived  at  in  giving  credits  on  single-name  paper 
when  you  are  not  in  possession  of  every  item  of  the  indi- 
vidual's business.  And  to  accomplish  this  end  (if  it  was 
practicable)  houses  might  club  together  who  sold  the  va- 
rious articles  on  credit  to  country  merchants,  whereby 
they  could  control  the  subject  on  single-name  paper. 

These  remarks  are  more  particularly  directed  to  the 
interest  of  the  jobbing  merchant,  but  his  credit  in  like 
manner  is  dependent  upon  the  same  general  principles  ; 
and  the  merchant  who  sells  him  must,  in  like  manner, 


How  to  make  Money.  197 

scrutinize  the  elements  of  his  business.  For  it  must  be 
borne  in  mind  that  upon  dealing  for  cash  or  short  indorsed 
paper,  or  any  single-name  credit,  and  upon  its  careful 
selection,  depends  the  success  of  the  merchant  or  his  fail- 
ure. That  while  toil,  anxiety,  hard  labor,  saving  and  ac- 
cumulating, are  not  the  act  of  a  day  or  an  hour,  how  fre- 
quently do  we  see  all  this  hazarded  by  a  credit  decided 
upon  in  a  few  moments,  and  that,  too,  not  by  the  intelli- 
gent action  of  the  owner,  but  generally  by  youth,  inexpe- 
rience, and  by  him  who  had  no  interest  in  the  result.  Is 
it  then. a  wonder  that  merchants  fail  ?  or  if  not,  lose  largely 
by  such  inattention  at  the  very  working-point,  requiring 
all  the  judgment,  tact,  skill,  and  knowledge,  that  can  by 
any  conceivable  means  be  brought  to  bear. 

It  is  a  safe  rule  in  crediting,  when  you  can  dispose  of 
the  paper  without  recourse.  If  this  be  adopted  as  a  set- 
tled rule  of  a  mercantile  house,  and  they  pursue  it  (and 
it  can  be  done),  they  will  certainly  make  money  and  make 
it  fast.  There  is  no  trouble  in  doing  it  in  individual  cases, 
but  if  that  should  be  adopted  as  a  rule  generally  it  would 
become  impracticable.  There  is  no  fear,  however,  that 
merchants  will  suddenly  become  so  wise  and  keen.  Any 
one  may  undertake  it  with  impunity  and  be  sure  to  make 
an  early  fortune. 

The  merchant  who  starts  in  business  with  the  deter- 
mination to  make  one  thousand  dollars  a  year  for  the  first 
year  over  and  above  his  expenses,  and  determines  to  owe 
no  man  a  dollar  at  the  end  of  the  year,  and  to  have  the 
money  in  bank,  or  in  good  salable  property,  will,  if  that 
course  be  pursued,  be  a  rich  man  at  the  end  of  ten  years. 
This  is  more  than  the  average  of  mercantile  houses 
make,  as  will  be  seen  by  looking  at  the  statistics  given  in 
a    former   chapter.     Let   us   examine   this   case.      The 


198  How  to  make  Money. 

second  year  he  will  undoubtedly  make  this  $1,000 
$2,000,  and  in  the  third  year  $3,000,  and  so  on — increase 
$  1,000  every  year  till  the  end  of  ten  years.  He  will,  then, 
have  made,  keeping  the  money  working  in  his  business, 
say  an  average  of  $5,000  per  year,  and  by  using  it  in 
cash  purchases  will  improve  it  equal  to  8  per  cent,  per 
annum.  This  will  be  on  an  average  $16  per  day.  Look 
at  the  table  of  earnings  for  10  years,  and  we  find  the 
earnings  of  $10,  $5,  and  $1,  added  together,  give  the  neat 
little  sum  of  $74,564.31.  If  he  only  made  $1,000  per 
annum  for  25  years,  and  improved  it  at  8  per  cent,  in  his 
business,  he  would  have  $74,342,  being  $3.13  per  day 
improved  at  8  per  cent. 

What  merchant,  however,  with  ordinary  means,  selling 
for  cash  or  passing  paper  without  recourse,  cannot  make 
$25  per  day?  This  in  10  years  would,  improved  at  7 
per  cent,  be  $111,144;  in  25  years,  $512,549;  in  30 
years,  $768,865  ;  in  40  years,  $1,640,525  ;  in  50  years, 
$3,374,939.  How  many  accomplish  these  sums  ?  and 
how  few  who  do  not  make  this  sum  per  day,  and  even 
more.  It  is  no  great  sum  to  make,  but  a  very  large  sum 
to  keep.  From  this  it  will  be  seen  how  much  of  the 
energies  and  attention  of  the  merchant  should  be  turned 
in  this  direction.  It  is,  in  fact,  the  whole  matter  of  money- 
making.  The  getting  of  the  small  daily  sums  will  com- 
paratively take  care  of  itself. 

The  following  suggestions  may  not  be  out  of  place. 

Look  to  your  credits. — Owe  no  man  a  dollar  if  you  can 
avoid  it. 

Look  to  your  credits. — Credit  no  more  than  you  can 
afford  to  lose,  but  no  credit  will  make  more  money. 

Look  to  your  credits. — Have  a  general  extended  know- 
ledge of  all  things  you  deal  in. 


How  to  make  Money.  199 

Look  to  your  credits. — Go  into  business  on  your  own 
account  late  rather  than  too  early  in  life. 

Look  to  your  credits. — Get  into  an  old  firm  rather  than 
establish  a  new  one. 

Look  to  your  credits. — Avoid  large  sales  to  individuals. 

Look  to  your  credits. — When  you  buy,  take  care  ;  when 
you  sell,  take  quadruple  care. 

Look  to  your  credits. — Make  no  useless  expenditures 
while  you  owe  others.  v 

Look  to  your  credits. — Make  a  little  and  make  it  sure  ; 
then  look  at  it. 

Look  to  your  credits. — Keep  your  property  well  in- 
sured ;  you  cannot  afford  to  lose  while  you  are  trying  to 
make. 

Look  to  your  credits. — Be  honest,  economical,  agree- 
able, and  pleasant. 

Look  to  your  credits. — Keep  your  expenses  low  and 
your  profits  high. 

Look  to  your  credits. — Look  out  when  your  credit  is 
too  good. 

Look  to  your  credits. — Take  little  credit  and  have  much 
money. 

Look  to  your  credits. — Have  a  small  house  and  large 
capital. 

Look  to  your  credits. — Be  modest,  but  feel  your 
strength. 

Look  to  your  credits. — Let  fashion  alone,  or  it  will  not 
let  you  alone. 

Look  to  your  credits. — Marry  early  a  good  wife  ;  a  poor 
one  is  better  than  none. 

Look  to  your  credits. — Mrs.  Grundy  will  not  pay  your 
bills;  therefore  don't  let  your  wife  spend  too  much  to 
please  her. 

9 


200  How  to  make  Money. 

Look  to  your  credits. — Have  an  eye  to  all  that  may 
damage  by  neglect. 

Look  to  your  credits. — If  you  fail,  give  up  all  to  your 
creditors  and  start  anew. 

Failure  is  one  of  the  things  paid  for  by  the  purchaser 
in  the  price  of  his  goods,  and,  therefore,  he  has  the  moral 
right  to  fail.  But  when  he  does  fail,  he  is  morally  bound 
to  give  up  what  he  has  to  his  creditors,  for  that  is  pre- 
supposed in  the  sale.  Failure  as  a  rule  is  disgraceful, 
because  it  indicates  inability  and  want  of  skill  and  know- 
ledge, and  hence  affects  the  individual  for  life.  The  seller 
charges  a  guarantee  on  the  sale  to  cover  loss  by  failure, 
and  the  individual  is  bound  by  no  rule  of  honesty  to  pay 
more  than  what  he  has  on  hand  at  the  time  of  failure. 
To  do  so  afterwards,  and  pay  in  full  for  his  own  blunder, 
is  commendable. 

No  one  can  properly  estimate  the  money  benefit  that 
arises  in  treating  those  whom  you  employ  justly  and 
fairly.  Kind,  gentle,  and  proper  treatment  to  those  who 
work  for  you  or  manage  your  affairs,  will  put  untold 
dollars  in  your  pocket.  The  reverse  will  lose  you  as 
much,  if  not  more. 


How  to  make  Money.  201 


CHAPTER  XV. 


BROKERAGE   AND    COMMISSION. 


Kinds  of  brokerage. — Skill  and  fidelity. — Knowledge  and  activity. — 
Know  everything. — Trusted. — Ultimate  success. — Broker  and 
owner  same  time. — Will  leak  out. — Confidence  lost — Little 
costs  much. — Legitimate  brokerage. — Solely  as  agent. — No 
risks. — Speculators  in  stocks. — Best  way  poor  enough. — Gam- 
bling table. — Reasons  why  all  lose. — Same  in  stocks. — Buys 
and  sells  without  rule. — Mathematical  chances. — When  to  sell, 
when  to  buy. — Must  do  as  others  do. — Then  land  where  others 
do. — Nothing  new.— Stand  to  principles. — Commission  business 
safe.— Simple  commission. — Credit  sales. — Your  main  trouble. 
— Guarantee  and  bank  notes  compared.— Rightly  done,  profit- 
able.— Five  per  cent,  large  results. — Example. — Energy  and 
honesty. — Acceptance  without  property. — Danger. — Violating 
business  rule. — No  risk  pays  best. — Capital. — Business  quali- 
ties.— Owners  scrutinize  every  point. — Capable  and  reliable. — 
Satisfactory  results. 


Brokerage  is  a  percentage  paid  for  selling  or  procuring 
property  of  various  kinds,  procuring  insurance,  or  labor, 
or  money.  The  percentage  is  sometimes  paid  by  the 
person  receiving,  and  sometimes  by  the  parties  parting 
with  property,  labor,  or  money,  or  the  insured  or  insu- 
rer. There  are  other  kinds  of  brokerage,  but  those 
noted  are  the  most  important  classes.  The  first,  broker- 
age for  selling  or  parting  with  property,  is  made  by  the 
purchase,  or  sale  of  stocks,  merchandize;  vessels,  real 
estate,  and  the  like ;  the  second,  procuring  fire,  marine, 
inland,  or  life  insurance  ;  the  third,  shipping  seamen, 
hiring  servants,  or  laborers,  and  the  like ;  the  fourth  pro- 


202  How  to  make  Money. 

curing  money  on  bonds  and  mortgages,  loans  on  securi- 
ties, on  notes  of  hand,  and  the  like. 

The  value  of  these  various  services  to  all  parties  depends 
upon  the  skill  and  fidelity  with  which  the  trust  is  fulfilled. 
The  ability  of  the  broker  to  fulfil  the  trust  to  advantage 
to  himself  and  his  principal,  depends  upon  his  knowledge 
and  activity.  Then,  to  make  the  most  money  by  his 
business,  he  must  act  for  the  interest  of  his  employer  and 
be  perfectly  reliable  and  honest,  skilful  and  active.  He 
must  know  everything  about  the  matters  in  hand,  both 
in  value,  supply,  and  demand.  He  stands  to  his  employer 
in  the  light  of  a  trustee.  The  manner  in  which  he  per- 
forms this  duty  will  either  make  him  or  lose  him  money. 
It  may  not  in  a  particular  instance,  for  he  will  get  his 
brokerage  whether  the  work  be  well  or  ill  done ;  but 
how  will  it  be  with  the  next  operation,  and  with  his  repu- 
tation to  get  more  business  ? 

His  ultimate  success  will  depend  upon  the  above, 
mainly,  but  there  is  still  another,  and  that  is,  whether  he 
confines  himself  striclly  to  his  legitimate  business.  A 
broker  cannot  be  a  broker  and  at  the  same  time  buyer 
and  seller  on  his  own  account,  without  losing  money  by 
the  combination.  He  cannot  be  a  buyer  and  seller 
extensively,  or  he  will  lose  the  character  of  a  broker  alto- 
gether. He  will  have  to  buy  and  sell  on  the  sly,  if  he 
does  it  at  all,  and  be  assured  it  will  leak  out.  The  buyer 
then  will  not  know  whether  he  is  buying  of  the  owner,  or 
of  the  owner  through  a  broker,  or  whether  he  is  selling 
to  his  broker,  or  through  his  broker  to  another.  All 
confidence  is  at  once  lost,  and  the  broker  loses  the  most. 

The  little  money  he  might  make  on  a  side  operation, 
will  be  largely  overbalanced  by  loss  of  his  regular  busi- 
ness.    If  a  broker  wants  to  buy,  employ  another  broker 


How  to  make  Money.  203 

to  buy  for  him,  or  proclaim  the  purchase  to  be  for 
investment.  Never  speculate  in  the  articles  you  buy  and 
sell  for  others  ;  you  will  lose  more  than  you  will  make. 

The  most  money,  if  the  business  is  legitimately  carried 
on,  is  in  brokerage  on  the  sale  and  purchase  of  stock, 
but  the  temptation  to  brokers  is  so  great  in  this  business 
to  speculate  in  them  on  their  own  account,  that  few  men 
have  the  strength  of  mind  and  ability  to  resist ;  and 
hence  few  start  with  a  fixed  determination  to  act  only  as 
agents  that  do  not  soon  find  themselves  in  the  almost 
universally  confused  vortex  of  broker  and  speculator,  and 
the  result  of  such  combination  is  generally  failure  in  the 
end.  Whereas  a  strict  adherence  to  a  simple  brokerage, 
taking  no  risks,, and  acting  solely  as  agent,  will  roll  up 
a  fortune  in  a  short  time.  It  requires  only  to  be  known 
that  by  no  per  adventure  money  in  your  hands  could  be  lost, 
and  dollars  will  roll  in  on  such  a  concern  from  every 
quarter  of  the  country.  To  this  end  never  sign  your 
name  to  a  responsibility  or  assume  one.  Take  the  proceeds 
of  each  day's  business  and  set  it  to  work  at  interest,  and 
you  have  only  to  look  at  the  tables  of  earnings  and  put 
your  finger  on  the  year  when  you  will  have  a  fortune. 

You  may  have  customers  and  probably  will,  who  specu- 
late in  stocks,  and  if  you  cannot  refrain  from  doing  so 
yourself,  it  is  well  enough  to  know  the  best  way  it  can 
be  done  ;  but  the  best  way  is  poor  enough  in  all  conscience, 
as  the  experience  of  all  will  certify.  If  any  one  has 
nothing  to  lose  and  everything  to  gain,  this  sort  of  busi- 
ness is  as  good  to  him  as  any  other ;  but  not  otherwise. 
There  are  certain  rules  of  the  gambling  table  that  apply 
in  stock  speculation.  As  a  rule,  one  would  naturally  sup- 
pose that  it  was  an  even  chance  to  win  or  lose  ;  but  there 
is  not  one  chance  in  one  hundred  of  winning  in  the  long 


204  How  to  make  Money. 

run,  when  there  are  ninety-nine  that  you  will  lose.  The 
reason  why  the  gambling  table  is  so  fatal  is  not  because 
there  is  not  as  much  chance  of  winning  as  losing  on  a 
single  cast,  for  there  is  just  as  much,  less  the  percentage 
in  favor  of  the  table  to  pay  current  expenses.  But  the 
trouble  and  fatality  lie  in  this,  that  the  game  is  usually 
continued  when  the  table  is  the  laigest  loser,  and  the 
game  stops  when  the  better  is  the  largest  loser,  and  has 
no  more  money  to  go  on  with.  These  fluctuations  being 
very  great,  the  bank  always  goes  on  because  of  its  capital, 
while  the  better,  not  having  an  equal  capital,  is  bound  to 
stop — he  is  broke. 

It  is  just  so  in  stock  speculations,  except  that  there  is 
a  still  more  fatal  element  in  that  than  in  gambling.  A 
man  buys  a  stock  to  rise,  and  he  will  hardly  ever  strike 
the  highest  point  or  sell  to  an  advantage.  Why  ?  Be- 
cause he  will  either  be  afraid  that  it  will  not  go  higher 
and  sell  at  a  small  rise,  or  wait  for  it  to  go  still  higher 
and  then  not  sell  till  it  gets  lower.  If  it  begins  to  fall, 
however,  he  will  not  sell  at  the  first  fall,  for  he  believes  it 
will  recover  ;  and  it  still  goes  down  and  down  till  he  will, 
usually,  like  the  gambler,  stop  at  the  lowest  point. 

The  only  hope  of  making  money  by  speculating  in 
stocks  is  to  determine  a  rule  of  chance  mathematically, 
and  adhere  to  it  strictly.  Then  suppose  a  stock  is  twenty 
per  cent,  below  its  average  value,  buy  what  you  can  hold 
and  determine  that  you  will  sell  at  ten  per  cent,  advance. 
The  chances  are  in  favor  of  your  making  the  ten  per  cent. 
If  the  stock  is  above  its  value  never  sq\\  short,  as  you  may 
not  be  able  to  get  the  stock  by  reason  of  a  corner,  and 
hence  will  lose  largely.  Notwithstanding  this  is  the  true 
rule  to  work  upon  for  safety,  the  experience  of  specula- 
tors is,  that  the  most  money  has  been  made  in  selling 


How  to  make  Money.  205 

"  short,"  as  it  is  called ;  for  generally  when  stocks  begin  to 
tumble,  failures  occur  which  bring  more  of  them  into  the 
market,  and  hence  prices  fall  still  further,  and  reach  an 
unnatural  depreciation.  If  the  stock  is  so  large  as  to 
warrant  the  belief  that  a  "  corner  "  cannot  he  had  under 
any  combination,  it  is  probably  a  reasonably  safe  way  to 
speculate.  But  to  the  solid  money-maker  nothing  of  the 
sort  should  be  resorted  to,  as  money  always  is  lost  in  the 
end  by  it. 

As  a  general  rule,  if  an  eight  per  cent,  paying  stock  is 
below  par,  buy  ;  if  a  six  per  cent,  paying  stock  is  above 
par,  sell ;  if  a  seven  per  cent,  paying  stock  is  par,  hold — 
buy  or  sell  if  above  or  below.  Good  stocks,  if  they  pay 
eight  per  cent.,  or  over,  will  do  to  hold  to  make  money  ; 
but  if  they  pay  no  more  than  seven  per  cent.,  bond  and 
mortgage  at  seven  per  cent,  is  better  ;  though  the  stocks 
are  frequently  held  in  order  to  have  convertible  securities  ; 
but  if  they  are  not  so  held,  bond  and  mortgage  is  the 
safest  and  the  best,  because  all  stocks  are  liable  to  acci- 
dent. Bond  and  mortgage  is  not,  when  proper  care  is 
taken. 

A  great  deal  more  could  be  said  on  this  branch  of  bu- 
siness, but  the  limits  of  this  work  will  not  allow.  The 
general  principles  laid  down  are  all  that  are  required  to 
insure  positive  success.  But  one  point  must  not  only  be 
remembered  but  carried  to  its  fullest  extent — take  110  risk. 
If  your  principal  wants  you  to  buy,  do  it  in  his  name  as 
agent.  But,  says  the  broker,  "  I  could  do  no  business — 
if  I  do  business,  I  must  do  it  as  others  do  it."  All  that 
can  be  said  to  such  a  one  is,  then  do  it}  and  land  just 
where  the  whole  of  them  land  in  the  long  run. 

But  you  can  do  otherwise.  Though  it  may  go  what 
might  be  called  slow  at  first,  the  moment  it  becomes 


2o6  How  to  make  Money. 

known  that  you  are  positive,  everybody  who  wants  a 
legitimate,  honest,  reliable,  and  trustworthy  broker,  will 
go  to  you,  and  will  leave  the  half  broker  and  speculator, 
for  all  experience  has  shown  that  they  are  not  safe.  You 
will  be  a  rich  man,  and  see  them  drop  down  one  after 
another  by  your  side.  "  There  is  nothing  new  under  the 
sun,"  and  "  what  has  been  will  be  again."  So  that  for  a 
time  you  will  probably  see  prosperity,  fortunes,  and  mil- 
lions, roll  up  by  the  side  of  your  comparatively  small 
earnings  ;  but  the  result  will  be  the  same  as  the  result 
of  the  race  between  the  fox  and  the  tortoise.  You  have 
but  to  stand  by  your  principles  and  your  determination, 
and  you  will  equal  the  most  prosperous  and  far  outstrip 
the  crowd.  All  other  principles  given  under  the  preced- 
ing chapters  as  applicable  to  other  businesses  must  be 
observed  also  in  this. 

The  commission  business  is  also  a  safe  and  money- 
making  business.  There  are  two  main  points  in  it,  how- 
ever, in  one  of  which  lies  all  the  danger  of  loss.  Goods 
sold  purely  on  commission  is  of  the  character  of  a  broker- 
age, but  the  per  cent,  is  higher,  and  this  portion  of  it  is 
safe,  and  with  energy  and  care,  combined  with  business 
tact,  can  always  be  made  profitable  amd  especially  safe, 
as  no  risk  is  run,  the  principal  assuming  all.  But  when 
sales  are  made  on  credit,  and  the  commission  merchant 
guarantees  the  sales  and  charges  a  percentage  for  it,  the 
danger  in  this  business  begins.  The  commission  is  very 
small,  and  amounts  guaranteed  very  large  ;  and  to  make 
the  business  at  all  successful,  those  conducting  it  must 
do  it  on  at  least  as  careful  judgment  in  value  of  credits 
as  banks  take  their  paper,  if  not  better,  for  the  guarantee 
ordinarily  is  2\  per  cent,  on  six  months'  paper,  while  the 
banks  get  3  \  per  cent,  for  the  same  length  of  credit  paid 


How  to  make  Money.  207 

once  in  the  mean  time,  for  they  do  not  take  as  a  general 
rule  over  ninety-days'  commercial  paper. 

Commission  business,  when  it  guarantees  credit  sales, 
is  a  very  close  business  ;  but  without,  it  is  one  of  the 
safest,  and  sometimes  the  most  profitable  business,  that 
is  done,  especially  when  a  house  gets  5  per  cent,  on  sales 
and  makes  no  guarantee.  It  is  not  a  difficult  task  for  a 
good  house  to  sell  $500,000,  and  some  go  as  high  as 
$  1,000,000,  and  higher.  Examine  the  case  of  one  making 
this  amount  of  sales,  $50,000,  less  expenses  of  $20,000, 
leaving  a  clear  profit  of  $30,000  per  annum.  Let  this  be 
done  for  twenty  years,  and  we  have,  if  improved  at  7  per 
cent,  the  amount  of  $1,267,196.  In  ten  years  this  would 
make  $425,126. 

But  upon  any  basis  where  there  are  no  losses,  a  com- 
mission business  put  to  work  on  these  principles  will 
soon  realize  a  splendid  amount  to  the  merchant.  If 
business  can  be  procured,  there  is  none  so  safe  as  this, 
nor  so  certain  of  realizing  an  independence,  provided  the 
credit  sales  are  not  guaranteed.  The  success,  however, 
depends  entirely  upon  the  amount  that  can  be  obtained  to 
be  done  ;  but  if  there  is  energy  and  entire  honesty  to  back 
it,  the  goods  and  property  will  come,  possibly  slowly  at 
first,  but  success  is  certain  with  perseverance.  The 
great  feature  on  such  small  profits  is  to  run  no  risk,  and 
the  danger  lies  in  accepting  while  the  property  or  goods 
are  in  transitu,  or  on  the  promise  of  their  coming  to  hand. 
Better  not  do  the  business  than  break  over  a  rule  ;  if 
you  do,  you  will  lose  money  by  it,  if  not  in  the  transac- 
tion itself,  by  the  loss  of  your  credit  as  a  man  of  business 
having  a  rule  "of  business  action,  and  violating  it  yourself. 

Nothing  pays  a  merchant  so  well  in  this  line  of  busi- 
ness, as  the  well  known  fact  that  he  takes  no  risk,  and 

9* 


?o8  How  to  make  Money. 

therefore  what  property  is  sent  to  him  is  safe.  If  you 
guarantee,  in  order  to  get  property,  you  must  have  a 
large  capital  to  back  your  credit ;  if  you  do  not,  little  or 
no  capital  is  required,  and  you  can  substitute  therefor 
personal  qualities  ;  and  if  they  are  substituted,  a  man 
must  know  that  they  are  as  good  as  money.  This  is 
credit,  and  without  that  is  founded  on  capital,  the  perso- 
nal qualifications  must  be  of  the  highest  order  and  more 
dependable  even  than  money. 

And  finally,  every  quality  that  should  belong  to  every 
business  man,  he  should  possess  in  an  eminent  degree, 
for  if  he  is  successful  in  obtaining  property  to  manage 
and  sell,  it  will  be  in  large  amounts,  and  from  owners 
who  will,  if  they  are  business  men,  scrutinize  every  point, 
to  be  sure  that  their  property  is  in  capable  and  reliable 
hands.  Once  a  character  is  established  and  your  rules 
of  action  known,  there  will  be  no  trouble  A  good  living, 
an  independence,  and  a  fortune,  await  you  in  time. 


How  to  make  Money.  209 


CHAPTER  XVI. 


INTELLECTUAL    LABOR. LAWYERS. 


Large  class. — A  type. — All  profit,  no  risk. — Minds  below  mediocrity. 
— Foist  services. — Preliminary  education. — Copperless  youth. — 
Business,  Independence,  fortune,  fame,  follow  success. — Hidden 
values. —  Stir  about.  —  It  will  come. — Golden  opportunity. — • 
Friend,  or  business  enemy.  —Plant  an  anchor. — Supposition  of 
gain  or  loss. — Office  behavior. — Lawyer  polite. — Office  for  busi- 
ness.— Parlor  for  pleasure. — Made  money  by  impressions. — Re- 
verse.— Cigars,  smoke,  spittle,  and  high  heels. — Intended  client 
quits. — Another  instance. — Too  much  to  do. — Do  nothing  well. 
— Clients  meet — A  little  Lawyer. — Made  him  rich. — Mammon 
offended. — Desire  to  be  thought  great. — Great  man  itch. — Law- 
yer failed  to  make  money. — General  reputation  injured. — En- 
gagements. —  Time  lost,  no  restitution. — Trespass  and  money. 
— Reason. — So  common. — High  charges. — Effect. — Just  charge. 
— Ideas  of  clients. — Important  suggestions. — Mind  that  regu- 
lates, assumes.  —  Human  nature  displayed.  —  Money  lost. — 
Clouds  of  sunshine. — Everybody  obliges. — When  arguments 
fail. — Haggard  countenance. — Iron  look. — Gimlet  eyes. — Dis- 
prove existence. — Compared. — Elements  of  success. 


This  division  of  labor  comprehends  a  large  class  of  the 
money-making  community,  and  like  all  other  labor  has 
its  value,  which  is  greater  or  less  just  in  proportion  to 
the  knowledge  and  skill  displayed  in  it.  It  is  not  in- 
tended to  speak  of  all  the  divisions  of  this  kind  of  labor, 
but  to  give  one  or  two  examples  which  may  be  taken  as 
types  of  the  whole.  Nor  is  the  lawyer  cited  because  of 
any  special  individuality,  but  as  a  large  and  important 
division  which  will  cover  as  many  points  as  any  other. 
As  a  general  rile  intellectual  1  ibor  presents  as  many  op- 


2 to  How  to  make  Money. 

portunities  to  the  money-maker  as  any  other  branch  of 
industry,  and  probably  more  than  any  other  to  make  an 
independence.  For  what  they  gain  they  have,  and  can- 
not lose  their  capital.  They  are  in  the  position  of  getting 
all  the  profits,  and  none  of  the  risks  of  loss  of  what  they 
put  into  their  business — referring  simply  to  the  intellec- 
tual. It  cannot  from  its  nature  take  the  wide  range  of 
manual  labor,  because  its  success  requires  mental  ability, 
which  all  do  not  possess.  It  frequently  happens,  how- 
ever, that  minds  absolutely  below  mediocrity  succeed  in 
making  professions  profitable,  by  possessing  personal 
qualities  by  which  they  can  foist  off*  their  services  at 
some  price.  This  being  so,  money  sometimes  flows  into 
them  quite  as  fast  as  to  the  abler  minds,  which  trust 
alone  to  their  value  for  a  market. 

The  profession  of  the  law  may  be  considered  under  all 
circumstances  a  safe  and  certain  way  to  make  money. 
It  requires  generally  some  capital  to  pay  for  the  prelimi- 
nary education,  and  to  live  upon  while  business  is  being 
made,  though  there  are  many  cases  of  high  success  which 
have  grown  out  of  the  copperless  youth,  and  when  they 
do  come  up  in  that  way,  they  come  up  strong  and  vigo- 
rous. Numberless  cases  could  be  named  where  the  raw 
boy  entered  the  lawyer's  office  to  run  errands  and  sweep 
out,  for  just  enough  to  keep  soul  and  body  together  ;  and 
by  sleeping  where  he  could,  with  now  and  then  a  nice  bit 
to  do  away  with  the  monotony  of  crackers  and  water,  he 
steadily  pushed  on,  reading  when  he  could,  till,  finally,  a 
legal  education  was  acquired,  and  he  admitted  to  practice. 
Then  in  came  business — an  independence — a  fortune — 
fame — and  high  position. 

A  wise  man  will  not  only  argue  analogically,  but  if  he 
sees  a  fact,  and  the  mode  by  which  it  is  attained  is  simple, 


How  to  make  Money.  2 1 1 

he  will  not  try  another.  So  it  should  be  with  the  law 
apprentice  and  with  the  practical  lawyer.  If  he  sees  one 
man  in  his  profession  making  money,  watch  him  and  see 
what  he  does,  if  you  wish  to  do  what  you  are  not  doing. 
There  are,  to  be  sure,  various  roads  leading  to  the  same 
place,  but  if  you  do  not  know  the  way  yourself,  is  it  not 
wise  to  follow  the  teamster  that  has  driven  the  way,  and 
who  is  just  in  front  of  you  on  the  road  ?  Then  do  as  the 
successful  man  does,  and  your  chances  are  as  good  as 
his,  all  other  things  being  equal. 

If  a  lawyer  had  the  concentrated  ability  and  knowledge 
of  ten  eminent,  successful  ones,  his  capital  would  lie  as 
dormant  and  worthless  as  gold  and  silver  in  the  earth, 
without  use.  Till  he  gets  a  start,  he  must  stir  himself 
about  among  men  of  business,  if  he  has  not  already  done 
so  while  a  student ;  become  acquainted  with  people  ;  make 
personal  friends,  and  personal  interest ;  for  although  you 
do  not  get  your  dollar  every  time  you  do  this,  and  for 
every  hour  you  spend  in  profitable  and  agreeable,  conver- 
sation with  a  friend,  or  even  a  stranger,  there  is  a  dollar 
in  it,  and  if  you  have  done  your  part  and  made  the  favor- 
able impression,  you  may  get  it  shortly.     //  will  come. 

As  in  the  case  of  the  mechanic — your  first  case  is  your 
golden  opportunity.  You  must  look  well  to  what  you  say, 
what  you  do,  and  what  impression  you  make  upon  your 
client,  to  make  the  most  money  by  your  opportunity ;  whe- 
ther you  will  make  him  a  permanent  client,  and  one  who 
will  sing  your  praises  wherever  he  goes,  or  become  a  busi- 
ness enemy.  The  manner,  the  interest,  the  promptness 
with  which  you  attend  to  his  case,  and  the  interest  you  mani- 
fest in  his  interest,  will  decide  a  great  point  in  the  money 
history  of  your  life.  Remember  that  in  every  step  of  your 
profession,  and  in  every  move  you  make,  there  lies  yourdol- 


212  How  to  make  Money. 

lar  if  you  choose  to  get  it.  If  you  fail  to  plant  an  anchor 
of  interest  in  your  first  client,  you  lose  largely,  for  you  have 
to  make  a  new  start.  The  difference  in  the  final  result  to 
you  is  the  same  difference  that  there  would  be  to  you  in 
dollars,  whether  you  placed  the  amount  you  received  of 
him  at  compound  interest,  or  whether  you  did  the  same, 
adding  each  year  the  same  amount  to  it. 
•  Suppose  that  you  received  for  your  first  case  $200, 
and  you  displease  the  client,  this  compounded  at  inter- 
est, 7  per  cent,  for  twenty  years,  would  amount  to  $774. 
If  you  pleased  him,  and  added  through  his  business  and 
what  he  would  recommend  to  you  each  year,  $200,  and 
improved  it  in  like  manner,  you  would  have  $8,468, — a 
difference  of  $7,694  on  your  scale  of  fortune,  for  pleasing 
or  displeasing  your  first  client.  This  would  seem  to  be 
worth  a  little  care  on  your  part,  and  worth  working  for. 
Such  apparently  little  and  unimportant  matters  are  worth 
considering  by  the  lawyer  who  is  striving  to  make  the 
most  money  by  his  profession. 

Generally,  then,  if  a  client  or  a  man  on  business  enters 
your  office,  speak  pleasantly  to  him.  If  you  are  writing, 
or  busy,  rest  for  an  instant,  till  you  ascertain  whether  he 
has  called  to  ask  you  a  simple  question,  01  wishes  to  see 
you  on  business  for  a  length  of  time.  He  will  either 
proceed  with  his  inquiry,  or  speak  of  .some  other  discon- 
nected subject,  or  tell  you  he  wishes  to  speak  to  you 
on  matters  of  business.  If  he  merely  asks  a  question, 
and  his  manner  indicates  haste,  answer  him  at  once  and 
let  him  depart.  If  he  speaks  on  general  matters,  and 
has  not  called  on  business,  ask  him  pleasantly  to  sit 
down  in  either  case,  for  you  cannot  tell  what  may  come 
out  of  his  call  and  your  politeness. 

When  the  ceremony  has  been  gone  through  with,  if 


How  to  make  Money.  213 

really  engaged,  you  can  say — "My  friend,  or  my  dear 
sir,  you  must  excuse  me  for  a  few  moments  ;  call  at  my 
house  at  8  o'clock  any  evening  when  I  am  at  home,  and 
we  will  talk  over  the  little  pleasant  matter  you  speak  of." 
Or  if  he  is  on  business  :  "  Please  excuse  me  just  now,  as 
I  am  very  busy  ;  call  again  at  2  o'clock,  I  shall  be  disen- 
gaged, and  will  see  you."  You  have  made  money  in 
three  ways,  by  these  civil  and  gentlemanly  answers. 

First. — You  have  improved  your  general  character  in 
the  community — a  point  essential  to  your  success. 

Second. — You  have  shown  to  your  client  that  you  are 
a  gentleman  and  systematic  in  your  business,  and  he 
will  have  confidence  in  you,  and  will  personally  respect 
you  ;  and  if  nothing  happens  will  give  you  other  business 
if  he  has  it,  or  will  recommend  you. 

Third. — You  have  shown  to  your  friend  that  business 
hours  and  the  office  are  not  intended  for  social  inter- 
course— that  your  house  and  your  parlor  are.  He  respects 
you  more  highly,  and  will  think  you  a  business  man,  will 
recommend  you  as  such,  and  give  you  his  business  if  he 
has  any. 

The  reverse,  however,  of  this,  is  too  frequently  the 
case.  On  entering  such  an  office,  you  may  see  a  young 
man  with  a  book  in  one  hand,  a  cigar  in  the  other,  his 
chair  on  its  two  hind  legs,  his  feet  on  the  mantel,  about 
level  with  his  shoulders  or  above,  a  pool  of  tobacco  spittle 
on  the  floor,  the  besprinkled  evidences  of  previous  hy- 
draulics of  like  stamp,  and  an  atmosphere  of  cigar  smoke. 

The  caller  was  a  business  man,  who  had  heard  through 
a  friend  that  such  a  young  man  highly  promising  had 
begun  business  just  where  he  found  this  individual.  A 
call  was  enough  ;  he  made  some  casual  inquiry  and  he 
regained  the  street  as  soon  as  possible,  lest  he  might  meet 


214  How  to  make  Money. 

the  very  friend  who  had  sent  him  there.  That  cigar  was 
the  cause  of  his  failing  to  make  the  costs  in  the  suit — 
about  two  hundred  and  thirty  dollars — and  the  failure  to 
get  a  good  client. 

Another  instance  of  a  young  lawyer  who  had  a  pro- 
pensity of  trying  to  impress  everybody  with  the  idea 
that  he  had  so  much  to  do  he  could  not  find  time  to  do 
anything.  He  made  a  great  fuss  about  business  when 
any  one  of  his  clients  came  to  his  office,  starting  the 
clerks  off  in  every  direction  at  the  same  moment,  and 
making  a  great  fuss  generally.  It  so  happened  one  day, 
that  one  of  his  clients  was  on  his  way  to  the  lawyer's 
office,  where  he  had  already  been  several  times  to  get  a 
moment's  conversation  with  him  on  the  subject  of  a  case 
about  to  be  argued.  Every  time  the  client  went  he  was 
compelled  to  go  some  four  miles,  there  and  back,  and 
each  time  the  lawyer  made  the  excuse  that  he  had  not  a 
moment  to  spare  and  could  not  say  a  word  to  him  on 
the  subject.  It  also  happened,  too,  that  new  faces  came 
in  during  the  client's  stay,  and  did  talk  with  the  lawyer 
as  long  a  time  as  the  client  wished  to  talk  to  him. 

But  as  he  was  on  his  way  thither  as  above  stated,  with 
great  anxiety  about  a  point  in  the  case  which  he  sup- 
posed the  lawyer  might  have  overlooked,  he  was  joined 
by  a  large  dry-goods  dealer,  who  commenced  relating  an 
incident  which  had  just  happened  to  him.  It  was  evi- 
dent the  man  was  somewhat  excited,  and  he  began  thus  : 
"A  little  puppet  of  a  lawyer,"  said  he,  "whom  I  have 
made  rich  by  the  business  I  have  given  him,  has  worried 
my  life  out  of  me  by  making  me  call  at  his  place  time 
and  again,  about  a  matter  that  would  not  take  him  two 
minutes  to  do.  Several  times  I  have  called  and  he  has 
quietly  kept  his  seat,  as  though  I  was  some  errand-boy, 


How  to  make  Money.  215 

and  said,  '  I  will  see  you  about  that  matter  to-morrow, 
I  am  engaged  just  now — won't  you  call  again  ?"  I  have 
just  called  for  the  last  time,  and  can  you  tell  me  of  a 
good  honest  gentlemanly  man — one  who  is  a  gentleman 
— and  knows  how  to  treat  people,  and  especially  an  old 
man  like  myself  ? " 

The  man  said  in  reply :  "  I  know  of  several  lawyers 
who  have  such  a  desire  to  be  thought  great  men,  that 
they  assume  an  immense  amount  of  importance  at  times, 
and  it  is  more  particularly  the  case  with  the  young  and 
those  who  have  not  in  truth  much  bottom  to  go  upon. 
My  lawyer  is  a  middle-aged  man,  a  good  honest  fellow, 
and  rather  smart ;  but  he  has  of  late  caught  the  great  man 
itch,  and  he  treats  me  now  just  about  as  you  complain  of 
being  treated,  though  my  time  is  not  as  valuable  as  yours, 
and  I  don't  mind  it  as  much." 

Some  other  conversation  ensued,  and  the  parties  sepa- 
rated— one  to  go  where  the  client  had  an  important 
case,  and,  therefore,  was  compelled  to  submit  in  a  measure 
to  bad  treatment  ;  the  other,  to  procure  one  to  whom  he 
might  transfer  his  business.  Both  these  lawyers  failed 
to  make  money,  not  because  they  were  not  well  read, 
nor  that  they  were  incapable,  nor  because  they  had  failed 
to  do  what  they  did  do  well ;  but  they  lost  money,  or 
failed  #to  make  it,  because  of  a  little  foolish  mannerism. 
Neither  meant  to  be  rude  or  unobliging  or  disagreeable. 
They  might  have  each  supposed  they  were  too  much 
engaged  to  attend  to  their  clients,  and  it  was  just  as  easy 
for  them  to  come  again.  They  both  lost  time,  too,  for 
neither  of  their  clients  would  have  detained  them  in  the 
aggregate  as  long  as  they  were  talking  in  excusing  them- 
selves. 

The  lawyer  of  the  dry-goods  merchant  lost  money,  or 


216  How  to  make  Money. 

failed  to  make  more  out  of  his  client,  amounting  at  least  to 
seven  hundred  and  fifty  dollars.  He  lost  the  client  of 
the  other  lawyer  just  named  by  reason  of  a  want  of 
favorable  recommendation  of  the  dry-goods  merchant,  for 
that  individual  had  determined  to  leave  as  soon  as  his 
case  was  through.  The  business  of  this  last  man  amounted 
in  ten  years  to  about  one  thousand  dollars. 

Both  injured  their  general  reputations,  and  some  indi- 
viduals were  deterred  from  patronizing  them  as  soon  as 
they  heard  the  opinions  expressed  and  their  peculiari- 
ties commented  upon.  It  would  have  been  quite  as 
cheap  and  more  gentlemanly  if  they  had  dispatched  the 
business  at  once  with  each  of  their  clients.  There  are 
but  few  instances  of  such  extremes  in  the  legal  profes- 
sion ;  but  few  or  many,  they  should  be  referred  to  in  a 
work  of  this  nature  to  indicate  whereby  money  is  not 
made,  and  also  wherein  money  is  lost.  There  is  an 
equity  in  all  matters  of  life.  If  you  make  an  engage- 
ment with  a  person  to  have  a  paper  drawn  up  ready  at  a 
given  time,  and  the  party  to  whom  it  has  been  promised  ap- 
pears and  it  is  not  ready — though  you,  as  a  lawyer,  charge 
for  your  time  in  drawing  the  paper — you  do  not  feel  like 
paying  the  man  for  his  loss  of  time,  when  he  is  com- 
pelled to  come  again,  and  very  likely  lose  double  or 
three  times  as  much  time  as  you  have  consumed  in 
drawing  the  document. 

This  very  important  principle  applies  to  every  depart- 
ment of  life,  and  is  a  trespass  and  wrong  done  to  an  in- 
dividual's time,  which,  in  justice,  should  be  discharged 
by  an  equivalent.  A  mechanic,  in  like  manner,  agrees 
to  finish  an  article  for  you,  and  compels  you  to  call  once 
or  twice  for  it  at  the  great  sacrifice  of  time  and  incon- 
venience ;  but  when  you  come  to  pay  for  the  article  lie 


How  to  make  Moitey.  217 

would  be  annoyed  that  you  should  charge  for  your  lost 
time.  The  reason  of  this  is  that  custom  has  allowed 
these  people  to  commit  this  wrong  so  long  without  hold- 
ing them  responsible  that  they  claim  the  wrong  now  as 
their  vested  right.  They,  however,  lose  money  by  it, 
whether  they  know  it  or  not.  But  this  does  not  excuse 
a  man  of  intelligence  acting  under  such  universal 
wrong. 

There  are  other  means  of  attracting  business  and 
keeping  it  peculiar  to  the  legal  profession.  High  charges, 
although  they  bring  immediate  money  to  the  pocket,  are 
not  the  most  profitable  in  the  end.  If  a  client  thinks  he 
is  overtaxed,  he  may  not,  from  motives  of  delicacy,  say 
anything  about  it ;  but  the  thing  hangs  on  his  feelings, 
and  if  he  has  occasion  for  a  lawyer  a  second  time  he 
hesitates,  looks  about,  and  is  in  many  instances  guided 
by  his  feelings,  and  not  by  his  judgment.  A  just  charge 
is  the  best,  for  it  makes  money  the  fastest. 

A  good  lawyer  will  never  undervalue  the  ideas  of  his 
client,  especially  if  he  be  a  man  of  some  intelligence. 
In  truth,  the  client  has  but  the  one  case  to  think  of, 
while  the  lawyer  has  many,  and  the  chances  are  very 
good  that  the  client  himself  may  suggest  very  important 
points  in  the  case.  A  wise  man  will  hear  all  that  is 
said,  cull  the  good  and  reject  the  chaff.  To  be  popular 
with  clients  and  to  be  on  the  best  of  terms  with  them  is 
money  made.  You  thereby  form  yourself  into  a  pleasant 
tone  of  feeling  which  makes  you  frank,  free,  open,  and 
apparently  honest,  before  judges,  juries,  and  clients.  It 
is  human  nature,  however,  for  the  mind  that  apparently 
regulates  to  assume  superiority.  The  wholesaler  has  a 
natural  repugnance  to  be  on  social  terms  with  the  re- 
tailer to  whom  he  sells  goods.     The  importer  lords  it 


218  How  to  make  Money. 

over  the  wholesaler  even  to  whom  he  sells  The  bankei 
looks  askance  at  his  customer. 

The  feeling  is  natural,  and  no  one  is  to  blame  for  en- 
tertaining it ;  but  it  is  not  a  money-making  operation  to 
display  it  in  any  of  the  businesses  just  named.  Nor  is 
it  policy  or  advantageous  to  merge  it  in  the  relations  of 
lawyer  and  client.  No  lawyer  can  estimate  the  value  of 
an  open,  frank,  honest  face,  the  exponent  of  clouds  of 
sunshine  in  the  heart.  He  has  an  advantage  before  the 
community  little  dreamed  of.  Business  is  easier  carried 
on,  persons  will  oblige  him,  clients  will  oblige  him,  the 
court  feels  more  willing  to  oblige  him,  will  give  weight  to 
his  sayings  and  sympathize  with  his  pleasant  talk  un- 
intentionally. Juries  are  prejudiced  in  his  favor,  and  his 
honest  manner  and  kind  words  win  when  arguments 
would  fail. 

But  in  a  long  course  of  legal  practice  now  and  then  we 
see  grey-haired,  haggard  countenances,  the  controlling 
elements  of  which  are  shrewdness  and  cunning.  No 
pleasant,  pleasurable  emotions  seem  to  float  on  their 
hearts.  They  have  a  fixed  iron  look,  with  eyes  like 
gimlets  to  bore  you  through  at  a  glance.  When  they 
come  before  a  jury  their  very  looks  put  the  jury  on  their 
guard  lest  talent  and  ability  should  disprove  existence 
or  transform  them  to  idiots.  Such  a  character,  even  with 
the  advantages  of  great  legal  acquirement,  fails  in  money- 
making  before  the  well-balanced  and  good-natured  man 
of  equal  attainments. 

Pleasant  manners,  a  neat  office,  close  attention,  good 
legal  acquirements,  small  expenses  and  perseverance,  will 
insure  to  any  member  of  the  bar  the  means  of  making 
money.  The  amount  made  will  depend  entirely  upon 
the  care  and  attention  given  to  it. 


How  to  make  Money.  219 


CHAPTER  XVII. 


INTELLECTUAL    LABOR. PHYSICIANS. 

Profession  eminently  useful.— Various  branches.— Different  qualities 
— Range  of  demand. — Money  matters. — Melancholy  examples 
— Professionals  and  misers  compared. — Duties. — Elements  of 
success. — Opposites  compared. — Directly  or  indirectly. — Ex- 
ample.— Dress  and  manners. — Lad  sent  for  doctor. — Reception. 
— Sharp  lecture. — Lad's  answer. — Time  rolled  on. — Doctor 
lost  money. — Trifle  important. — Can  look  back. — Married  life. 
— Another  independence. — Means  will  come. — Life  insurance. 
— The  two  cases  cited. — No  more  examples  necessary. — Specific 
charges. — General  rule.— Cardinal  principle. — Extensive  suc- 


This  is  another  branch  of  intellectual  labor.  In  this, 
as  in  all  other  classes,  there  are  degrees  of  usefulness  and 
of  necessity,  skill  and  education,  while  the  profession  is 
eminently  intellectual,  useful,  and  necessary,  in  its  higher 
development,  to  the  comforts  of  man.  It  affords  the 
means,  at  the  same  time,  of  making  an  independence  or 
of  increasing  it  to  a  fortune.  The  main  profession  is 
subdivided  into  various  branches,  some  more  and  some 
less  intellectual ;  some  more  and  some  less  mechanical ; 
though  all  profess  the  controlling  element  in  execution 
which  binds  them  to  this  division  of  labor.  The  object 
here  is  not  to  show  what  constitutes  a  good  or  an  indif- 
ferent practitioner,  what  is  skill,  or  what  is  the  reverse,  in 
the  profession.  Each  individual  is  taken  as  he  is,  and 
then  shown  how  he  can  make  the  most  with  the  know- 


220  How  to  make  Money. 

ledge  that  he  possesses,  presupposing  that  the  more 
knowledge  and  the  more  skill  he  displays,  the  wider  will 
be  the  range  of  his  demand,  and  the  greater  the  pecuniary 
profits  resulting. 

It  is  often  remarked  that  professional  men  pay  but 
little  attention  to  their  money  matters,  and  that  they  are 
generally  poor  because  they  think  money  is  of  little  con- 
sequence. There  are  a  few  such  melancholy  examples 
of  humanity.  Their  real  wants  are  few,  and  easily  satis- 
fied. So  long  as  they  have  clothing  to  wear,  food  to  eat, 
and  books  to  read,  their  money  wants  are  just  equal  to 
their  expenditures.  They  will  not  undertake  the  care  of 
money  to  the  exclusion  of  their  natural  tastes.  They 
see  no  pleasure  in  a  heap  of  gold,  which  requires  sleep- 
less nights  and  watching  days  to  guard,  when  that  will 
give  no  more  than  they  possess.  The  pleasure  of  ac- 
quiring knowledge,  with  them,  is  like  the  pleasure  of 
acquisition  with  the  miser.  The  miser  would  take  no 
heed  of  the  professional  man's  occupation  ;  it  would  be 
irksome  to  him,  while  the  professional  man  would  be 
disgusted  with  the  miser's  joy. 

Notwithstanding  such  views,  every  professional  man 
has  his  moral  and  political  duty  to  perform,  and  he 
should  do  it.  He  should  strive  for  his  independence,  and 
for  the  independence  of  those  dependent  upon  him,  as 
his  first  great  duty,  and  then  to  his  tastes  afterwards. 
There  are  several  ways  in  which  this  can  be  accom- 
plished, which  will  be  referred  to  hereafter.  The  public, 
however,  has  no  demand  that  he  labor  beyond  this  point, 
while  it  has,  till  he  shall  obtain  that  end. 

The  first  great  elements  of  success  in  this  profession  are 
knowledge  and  skill ;  and  next  to  these  is  pleasant,  win- 
ning, mild,  and  gentle  demeanor.     No  one  can  estimate 


How  to  make  Money.  221 

such  manners,  for  as  much  as  they  will  make  in  money 
for  the  possessor,  and  especially  in  a  physician  who  has 
to  deal  with  human  nature  in  its  most  nervous  and  exci- 
table state.  The  very  presence  of  such  an  angel  of 
mercy  at  such  a  time,  seems  to  soothe  and  allay  disease 
without  medicine.  The  effect  on  some  is  truly  marvel- 
lous ;  and  if  it  has  no  other  result  on  others,  it  makes  his 
presence  in  the  chamber  of  the  sick  a  ray  of  sunshine 
that  revives  and  vivifies  the  drooping  system.  The  oppo- 
site quality,  on  the  contrary,  chafes  and  excites,  producing 
a  repulsiveness  which  operates  unfavorably  upon  his 
finances  and  future  employment.  Cases  could  be  cited 
where  such  qualities,  combined  with  ordinary  skill,  pro- 
duced more  money  than  the  opposite  supported  by  the 
highest  talent,  with  greatly  superior  knowledge  and  skill. 
But  the  proposition  is  almost  self-evident,  and  needs  no 
further  illustration  than  the  mere  mention  of  the  fact. 

Civil  treatment  to  all,  however,  is  absolutely  necessary 
for  the  physician  to  be  able  to  procure  the  most  for  his 
talents  and  skill.  He  may  carry  the  opposite  to  such  an 
extreme  as  to  almost  entirely  neutralize  all  his  ability, 
and  only  be  able  to  procure  business  in  very  extreme 
cases.  It  requires  no  argument  to  show  that  he  loses 
money  by  such  a  course,  and  that  he  would  make  it  by 
a  different  one.  In  truth,  any  element  of  intercourse 
with  men  and  society  that  has  been  referred  to  in  this 
book,  heretofore,  applies  directly  or  indirectly  to  the 
physician.  We  will  cite  an  instance  of  uncivil  treatment, 
and  its  consequences. 

A  certain  physician,  and,  by-the-by,  a  very  eminent  one, 
being  in  a  small  place  in  the  State  of  New  York,  had  his 
office  and  his  sleeping  apartment  in  the  same  building, 
and  connected  on  the  same  floor.     The  front  room  was 


222  How  to  make  Money. 

used  as  his  office  and  consulting  room,  and  the  rear  one  as 
his  sleeping  apartment.  He  was  a  pompous,  conceited 
man,  wore  a  white  vest,  and  white  cravat,  and  dressed 
otherwise  in  keeping.  A  lad  of  about  twelve  years  old, 
brought  up  on  a  farm,  arrived  in  the  place  accompanied 
by  his  father  and  mother,  on  a  visit  to  his  brother  who 
lived  there.  It  so  happened  that  the  father  fell  sick,  and 
as  this  physician  was  the  family  physician  of  the  brother, 
of  course  he  must  be  sent  for  to  attend  the  father. 
There  happened  to  be  no  one  immediately  about  to  send. 
The  lad  of  twelve,  who  had  just  arrived,  was  determined 
on  to  do  the  errand  ;  so  after  a  full  explanation  of  where 
the  doctor  could  be  found,  and  of  his  room  and  its  location, 
the  boy  started  off.  From  his  knowledge  of  such  things 
in  the  country  where  he  came  from,  to  go  for  the  doctor 
was  to  go  to  an  apothecary's  shop,  and  not  to  the  private 
rooms  of  an  aristocratic  doctor  in  white  cravat  and  vest. 
Being  rather  an  energetic  lad,  he  soon  found  the  place, 
and  waiting  for  no  ceremony  while  his  father  wanted  the 
doctor's  services,  bolted  right  into  the  presence  of  the 
august  doctor  without  knocking.  The  doctor  looked  up 
amazed  at  the  boy,  and  the  boy,  having  but  one  object, 
was  about  to  ask  the  doctor  if  he  was  the  man  he  wanted, 
when  the  doctor  rose  and  in  a  very  imperative  way  spoke 
to  the  boy:  "How  dared  you  enter  my  office  without 
knocking  ? "  The  boy  replied,  "  Is  n't  this  the  doctor's 
shop  ? "  "  Who  are  you  ? "  sharply  asked  the  doctor. 
"Well,  my  brother  lives  over  here,  and  my  father  is 
sick."  An  explanation  took  place,  and  the  doctor  having 
discovered  who  the  boy  was  and  his  business,  read  him 
a  sharp  lecture  on  manners,  to  which  the  boy  replied  : 
"  They  don't  knock  at  doctor's  shops  where  I  came  from." 
Though  the  boy  was  a  rough,  country  lad,  he  knew  that 


How  to  make  Money.  223 

he  had  done  no  harm  intentionally,  and  rememberec1 
long  afterwards  what  he  thought  was  the  eccentricity 
of  a  crabbed  doctor. 

Time  rolled  on,  and  the  boy  grew  to  be  a  man  of  in- 
fluence and  wealth,  finally,  in  the  very  same  place, 
which  had  in  the  meantime  grown  immensely.  The 
insulted  boy  never  forgot  it  in  his  manhood,  nor  did  the 
doctor,  who  still  practised,  ever  get  a  cent  from  him  or 
from  any  one  that  he  could  influence,  for  the  doctor  had 
by  this  little  unnecessary  incivility  made  an  enemy  for 
life.  So  that  it  is  plain  to  see  that  the  doctor  lost  more 
in  the  end  than  he  made  by  the  visit  to  the  sick  fathei 
that  resulted.  More  money  is  lost  to  individuals  by  just 
such  little  trifles,  than  is  lost  by  credits  or  bad  debts. 
The  professional  man  who  sometimes  badly  feels  the 
want  of  money,  may  look  back  and  see  when  he  could 
have  made  instead  of  lost  through  this  means. 

It  is  the  general  belief  that  a  physician  will  make  more 
money  in  his  profession  married  than  single.  We  are  of 
the  same  opinion.  But  a  serious  question  arises  in  such 
an  arrangement.  "  I  have,"  says  he,  "  but  one  to  support 
now ;  I  shall  have  two,  then."  If  you  make  more  money 
you  will  have  more  means  to  pay  the  additional  expense. 
All  experience  proves  that  the  married  couple  get  on 
better  than  the  single  bachelor,  for  somehow  or  another 
the  means  come  along,  though  it  may  look  a  little  doubt- 
ful to  look  forward  to  it.  Much,  however,  depends  upon 
the  choice  of  the  wife  ;  but  if  she  has  the  right  views  and 
right  intentions  there  will  be  no  trouble ;  the  living  will 
come  with  industry  and  perseverance.  The  only  trou- 
ble will  be  in  the  scale  of  expenditure  and  style  of  life 
adopted. 

There  is,  too,  another  independence  to  look  out  for  in 


224  How  to  make  Money. 

case  of  accident  A  small  item  a  year,  which  can  be 
economized,  will  secure  a  life  assurance,  say  to  fall  in  at 
the  end  of  ten  years,  by  which  you  can  make  money  and 
have  it  at  that  time  if  you  live,  and  if  you  do  not,  your 
family  is  provided  for.  This  will  be  fully  discussed  here- 
after. The  two  cases  of  intellectual  labor  cited  here,  the 
lawyer  and  physician,  are  all  that  the  space  will  allow. 
What  has  been  said  under  the  first  head  in  almost  every 
particular  applies  equally  to  the  second.  It  would  there- 
fore be  useless  to  repeat  them  here.  Nor  would  it  be 
instructive  to  give  more  examples  of  the  same  kind  of 
labor  ;  that  is,  intellectual  labor,  which  receives  its  reward 
in  specific  charges  made  for'  specific  services.  There  is 
the  same  general  principle  in  such  charges  as  there  is  in 
merchandizing.  Excessive  profits  drive  customers  from 
them,  and  excessive  charges  will  in  like  manner  drive 
customers  from  it.  To  charge  reasonably,  but  justly,  is 
a  great  element  in  making  the  most  money  by  the  op- 
portunity. This  cardinal  principle  should  never  be  lost 
sight  of  by  those  who  seek  extensive  success,  not  only  in 
this  department  of  labor,  but  in  every  other. 


How  to  make  Mo7iey.  225 


CHAPTER  XVIII. 

INTELLECTUAL  LABOR. — PROFESSIONAL  SALARIED  PER- 
SONS. 


Learned  of  the  land. — Noble  objects. — Idiosyncrasies. — Day  of  ad- 
versity.— Sphere  of  aclion.— How  can  I  ? — Trifle  bagatelle. — 
Results  compared. — Scale  of  equalities. — Can  and  do. — No  credits 
needed. — Nothing  to  detract. — Friends  and  influence. — Limits  of 
expenditure. — Style  of  life. — Profits  always  due.— Most  from 
services. — Personal  qualities. — Spending  part. — Ten  per  cent,  not 
your  own. — Fifteen  per  cent,  reserve. — Contingencies. — Bad  luck. 
— Helter-skelter. — Independence  and  courage. — First-rate  busi- 
ness.— Results. — Life  insured. — Increase  style  of  life. — Formula. 
— Life  becomes  a  fixity. — Wants  relation. — One  quarter  less. — No 
difference. — All  beautiful. — How  can  I  do  it  ? — Answer. — Spend 
your  profit. — Fail  sure. — Simple  plain  story. — Stand  like  a  man. — 
Take  your  choice. 


These  form  a  large  class  of  the  most  intelligent  and 
learned  of  our  land.  For  what  they  contribute  in  various 
ways  they  are  the  least  rewarded  for  their  positive  use- 
fullness  in  mere  money.  This,  however,  is  not  all  they 
strive  for ;  it  is  a  means,  generally,  of  maintaining  a  live- 
lihood for  higher  and  nobler  objects.  As  a  general  thing, 
they  are  too  indifferent  about  money,  or  what  it  will 
bring,  further  than  to  accomplish  their  peculiar  ends. 
From  enumeration  of  cases  where  devotion  to  learning 
absorbs  all  thought  to  the  exclusion  of  such  matters,  criti- 
cism will  hold  in  saying  or  expressing  a  regret  of  such 
idiosyncrasies.     Whatever   such  a  one  may  care  of,  or 


226  How  to  make  Money. 

\ 

for  himself,  he  has  a  special  duty  to  perform  as  a  citizen 
which  nothing  should  be  allowed  to  crowd  out  of  its 
legitimate  place.  Health,  vigor,  and  intellect  may  not 
always  be  left  to  produce  what  life  and  necessities  de- 
mand. Knowing,  then,  this  fact,  no  one'  can  insure  him- 
self by  simply  providing  for  the  wants  of  the  hour  and 
doing  nothing  for  the  day  of  adversity  or  the  uncertain 
future.  The  life  and  health  may  be  spared,  opportuni- 
ties and  employments  are  not  always  open  to  him  who 
will  take. 

There  would  seem  to  be  no  class  whose  duty  is  appar- 
ently so  imperative  as  this,  to  provide  an  independence 
for  themselves  and  those  dependent  upon  them,  for  there 
is  none  so  helpless^  out  of  their  particular  sphere  of  action. 
They  know,  of  necessity,  but  little  about  the  business  of 
life,  from  the  fact  that  the  whole  course  of  it  is  exclusion 
from  the  world,  except  so  far  as  their  specialties  bring 
them  in  contact  with  a  small  portion  of  it.  If  accident  of 
employment,  or  of  health  arises,  they  are  at  once  at  a  loss, 
not  being  competent  to  turn  their  hand  to  collateral  em- 
ployments, as  others  generally  can  do  who  are  educated 
to  other  businesses.  This  duty,  then,  of  providing  an 
independence,  would  seem  to  extend  further  than  a  mere 
moral  and  political  one,  with  this  class. 

The  direct  question  is  then  put  by  the  professional 
salaried  person  :  "  How  can  I  make  money  ? "  The 
reason  why  this  question  is  so  often  propounded  is,  that 
the  salary  seems  but  a  mere  trifle,  a  bagatelle,  alongside 
of  the  talked-of  incomes  of  the  immensely  wealthy,  the 
merchant,  manufacturer,  or  the  high-grade  mechanic. 
The  only  way  one  class  can  measure  itself  with  another 
on  the  successful  money  scale,  is  to  compare  results. 
For,  as  is  well  known,  it  is  easy  to  talk  or  boast,  and  be- 


How  to  make  Money.  227 

lieve  at  the  same  time  what  you  are  saying ;  but  in 
money  matters  belief  don't  make  dollars  or  fortunes. 
Results  are  the  only  sure  criterion  of  the  positive  profit- 
ableness of  a  calling  or  profession,  and  here  is  where  the 
professional  man  must  look  to  see  whether  in  the  great 
scale  of  equalities  in  this  respect,  he  has  a  chance ; 
whether  the  money  results  of  his  calling  fall  below  or 
rise  above  the  average  of  other  businesses. 

There  can  be  no  dispute  as  to  one  point,  and  that  is 
that  the  salaried  person,  if  he  obtain  fair  remuneration, 
can  accomplish  more  in  that  way  than  the  average  of 
merchants  do.  To  satisfy  himself  on  that  head,  he  has 
but  to  look  at  the  statistics  of  mercantile  life  given  in 
the  chapter  on  "  How  to  make  Money,"  and  he  will  at 
once  see  that  at  least  such  results  can  be  avoided.  Nor 
is  it  believed  that  any  other  of  the  main  branches  of 
trade  that  make  or  undertake  to  make  by  giving 
credits,  have  risen  much  higher  in  the  scale  of  final 
money-making  than  the  mercantile.  In  the  class  under 
consideration,  however,  no  credits  need  be  given  to  obtain 
what  is  received,  and  hence  it  more  nearly  approaches 
the  certainty  of  the  retailer  to  a  success. 

In  this  class,  as  in  every  other  department  of  labor,  their 
services  are  valuable  and  will  command  a  high  price,  just 
in  proportion  to  the  knowledge  and  skill  possessed,  pro- 
vided no  other  qualities  detract  from  preventing  the  indi- 
vidual obtaining  it.  In  order,  however,  to  obtain  it,  even 
under  such  circumstances,  as  a  general  rule  it  requires 
standing,  influence,  and  personal  friends  to  secure  posi- 
tions, and  sometimes  to  retain  them  after  they  have  been 
obtained.  But  this  depends  more  upon  the  individual  him- 
self than  upon  others,  as  a  general  thing.  Permanency, 
industry,  and  close  attention  to  business,  will  insure  the 


228  How  to  make  Money. 

greatest  amount  of  income,  and  the  largest  results  in  the 
end. 

Professional  men  are  measurably  confined  within  cer- 
tain limits  as  to  their  expenditures,  even  though  they 
decide  upon  a  course  of  retrenchment  as  a  sinking  fund. 
Their  positions  and  professions  require  a  certain  style  of 
life  consistent  with  their  calling  ;  and  sometimes  this  un- 
fortunately absorbs,  or  nearly  absorbs,  their  entire  income. 
But  there  are  certain  principles  which  regulate  salaries, 
as  there  are  which  regulate  the  price  of  manual  labor,  or 
any  other  kind  of  business.  In  a  particular  instance  the 
price  may  be  too  low,  and  if  so,  it  must  be  raised,  so  that 
an  average  corresponding  with  others  will  be  obtained. 
No  one  will  work  for  simply  enough  to  pay  for  neces- 
saries ;  there  must  be  a  margin  for  profit,  or  the  business 
would  run  out.     No  one  would  be  found  to  do  less. 

So  that  the  professions  are  of  sufficient  consequence, 
and  the  results  flowing  are  of  sufficient  value  to  pay  not 
only  for  the  necessaries  of  those  who  conduct  them,  but 
a  profit  beyond  ;  and  in  this  fact  lies  the  security  that  such 
services  will  be  properly  rewarded.  There  can  be  no 
general  rule  laid  down  as  to  what  this  profit  should  be,  or 
what  it  is.  But  one  thing  is  certainly  known,  that  there 
is  scarcely  a  salary  paid  for  valuable  services  that  will  not 
support  the  laborer  and  leave  a  handsome  profit  over.  So 
far  as  that  matter  goes,  however,  the  object  in  hand  is  to 
show  how  the  most  can  be  got  by  given  services  ;  in  other 
words,  how  to  get  the  most  over  necessaries,  and  then 
what  to  do  with  it. 

As  has  been  said  before,  the  most  knowledge  and  skill 
will  entitle  the  salaried  person  to  the  most  money, 
abstractly,  for  his  services.  But  there  might  be  such  a 
thing  as  the  most  undeserving  receiving  more  than  the 


How  to  make  Money.  229 

most  deserving.  But  these  are  exceptions,  and  in  the  end 
will  regulate  themselves.  The  rule  will  hold  good  in  the 
long  run,  if  the  individual  has  no  personal  quality  to 
stultify  his  merits.  And  here  many  of  the  general  prin- 
ciples hold  good  that  are  laid  down  for  the  clerk,  and 
need  not  be  repeated.  It  may  then  be  assumed  that 
the  professional  salaried  person  is  in  the  due  receipt  of 
his  income,  and  what  can  be  said  to  aid  him  in  making 
money  ? 

You  can  make  a  profit  by  not  spending  all  that  you 
receive.  In  other  words,  make  up  your  mind,  on  a  care- 
ful consideration  of  all  things,  how  much  you  can  live  on, 
and  then  do  it.  Never  be  too  grasping,  and  put  your  pro- 
fits too  high  ;  if  you  do,  you  will  share  the  same  fate  of 
the  merchant — fail  in  your  undertaking.  But  a  safe  rule, 
from  our  knowledge  of  salaries,  would  be  a  saving,  or 
rather  not  using,  twenty-five  per  cent,  of  receipts  ;  but 
if  this  be  too  high,  twenty,  fifteen,  or  ten.  You  would 
probably  make  most,  and  carry  out  what  designs  you  do 
make,  by  calling  it  ten  per  cent.,  and  laying  aside  the 
fifteen  as  a  reserve  to  help  out  of  any  accident.  Thus, 
if  your  salary  was  $4,000,  you  say  to  yourself,  "  My  style 
of  life  and  expenses  shall  be  $3,000  ;  four  hundred  dol- 
lars is  not  mine,  because  I  have  constituted  myself  a 
trustee  for  myself  and  family,  and  this  is  to  be  invested 
anyhow,  for  their  benefit.  This  I  have  no  right  to  touch, 
to  spend.  I  have  $600 — fifteen  per  cent. — that  I  can 
improve  at  interest,  if  nothing  happens,  in  the  same  way, 
but  some  unforseen  accident  may  occur  that  my  expenses 
may  exceed  $3,000.  I  will  hold  this  as  a  reserve  for  such 
contingency." 

Now#this  is  a  safe  platform  for  a  salaried  person,  and 
nothing  but  extraordinary  bad  luck  can  make  him  fail  in 


230  How  to  make  Money. 

his  undertaking.  With  the  $400  you  can  take  a  ten-year 
endowment  policy,  which  will  insure  your  life  in  the  mean- 
time. This  will  be  explained  under  Life  Insurance.  The 
$600  should  be  deposited  in  a  savings  bank,  at  interest, 
where  it  will  be  under  control  at  any  moment  for  use.  Buy 
nothing  beyond  what  you  have  cash  in  hand  to  do,  and  all 
will  go  well  and  prosperity  will  be  your  lot,  with  many  com- 
forts never  dreamed  of  in  a  helter-skelter  way  of  doing 
things  where  you  have  never  known  how  or  where  you 
stand. 

If  you  can  have  the  independence  and  courage  to  live 
up  to  this,  and  spend  $3,000  when  you  have  an  income 
of  $4,000,  you  will  be  doing  a  much  better  money-mak- 
ing business  than  the  average  of  wholesale  commercial 
houses,  and  without  comparison  a  first-rate  business. 
Just  look  at  the  result  and  you  will  see.  Your  endow- 
ment policy,  besides  insuring  your  life  in  the  meantime, 
will  accumulate  at  6  per  cent.,  and  your  $600  at  the  same, 
that  is,  $1,000  a  year,  at  6  per  cent,  which  in  ten  years 
will  give  you  $13,246.42  ;  in  twenty  years  $37,643  ;  in 
thirty  years  $80,403  ;  in  forty  years  $160,486.  This  re- 
sult can  be  obtained  besides  keeping  your  life  insured  for 
the  whole  time,  and  in  case  of  death  your  family  gets 
the  amount  of  the  policy.  As  you  gain  knowledge  and 
skill  in  your  profession  you  will,  in  all  probability,  be  en- 
abled to  obtain. an  increase  of  salary,  which  increase  can 
be  used  towards  current  expenses,  and  thereby  increase 
your  style  of  life,  if  ypu  have  no  other  calls  for  increase 
of  current  expenses. 

This  formula  will  answer  for  any  conceivable  amount 
of  salary.  The  life-policy  will  not  be  the  same ;  it  may 
be  smaller  or  greater  in  proportion  to  the  receipts.  By 
such  a  platform  for  life,  you  are  not  constantly  endeavor- 


How  to  make  Money.  231 

ing  and  always  failing  to  decrease  your  expenditures,  for 
such  efforts  make  you  unsettled  and  unhappy  without 
attaining  the  object  for  which  you  strive.  But  when  you 
have  a  fixed  sum  to  spend  there  is  the  end  of  the  whole 
matter,  and  you  at  once  become  satisfied  and  contented 
with  what  you  do  spend,  and  with  the  result.  Make  the 
want  the  ability  to  supply  it,  and  life  and  living  become 
a  fixity. 

You  will  accomplish  nothing  more  if  you  spend  all  in 
pandering  to  wants,  for  they  are  relative  ideas  ;  and  by 
supplying  all,  you  will  in  the  end  be  no  better  satisfied, 
or  accomplish  more,  than  by  supplying  three-quarters  of 
them,  and  denying  yourself  the  other  quarter.  For  if 
you  had  no  fixed  principle  of  living,  the  probabilities 
are  you  might  spend  all  your  income,  and  satisfy  one 
want  in  a  hundred.  The  salaried  person  may  say  to  him- 
self: "This  is  all  beautiful  in  theory,  and  it  is  very  well ; 
and  I  can  see  plainly  that  it  is  my  duty  to  provide  against 
accident  or  a  rainy  day,  but  I  try  my  best  now,  and  can 
hardly  make  both  ends  meet ;  how  can  I  do  this  thing 
and  make  it  work  practically  ? " 

The  answer  is  just  here ;  that  you  receive  a  certain 
amount  of  salary,  which  by  usage,  and  from  the  demand 
of  your  special  kind  of  labor,  is  sufficient  to  pay  your 
expenses  in  a  style  of  life  commensurate  with  your  occu- 
pation, and  twenty-five  per  cent,  of  profit.  If  you  spend 
all  your  profit,  you  are  doing  just  what  the  unsuccessful 
merchant  is  doing,  and  ,your  condition  will  be  the  same  as 
his  when  your  employment  ceases,  and  you  and  your 
family,  if  you  cannot  get  something  to  do,  will  be 
thrown  upon  public  or  private  charity.  This  is  the 
simple,  plain  story,  plainly  told.  Then,  as  an  intelligent 
man,  will   you  do  what  you  can  to  avert  this  end,  01 

10* 


232  How  to  make  Money. 

will  you  do  what  your  intelligence  teaches  you  you 
should  do,  and  be  independent  of  both,  and  stand  like 
a  man  before  your  friends  and  the  community.  Take 
your  choice ;  the  responsibility  lies  with  you,  and  the 
information,  too. 


SPECIAL   REMARKS. 


The  reader  must  not  conclude  that  the  trades  or  occu- 
pations not  herein  named  are  neglected  or  forgotten. 
Space  will  not  admit  that  each  one  should  be  specifically 
referred  to.  Those  which  have  been  treated  must  be 
considered  as  types,  and  have  been  selected  on  account 
of  their  importance,  and  the  large  class  of  individuals 
they  contain.  Nor  must  each  suppose  that  what  is  said 
under  each  head  contain  all  the  principles  applicable  to  it. 
The  contrary  is  the  fact.  There  is  no  principle  in  the 
one  that  does  not  apply  generally  to  each ;  and  further 
than  that,  those  principles  apply  to  every  known  occupation 
not  specifically  named  herei7i.  It  will  therefore  be  seen 
that  to  name  every  occupation,  and  recite  the  principles  of 
money-making  applicable  to  it,  would  be  a  series  of  repe- 
tition, cumberous  in  their  extent,  and  wearisome  to  the 
reader.  Nor  is  it  supposed  that  every  principle  governing 
this  important  subject  is  displayed  here,  but  enough  has 
been,  and  will  be  said,  to  illustrate  the  most  important. 
Whether  the  ideas  set  forth  will  be  advantageous  or  not, 
will  rest  entirely  with  each  individual.  The  main  idea 
intended  to  be  urged  is  the  high  moral  and  political  duty 
each  one  is  under  to  secure  for  themselves,  and  those 
dependent  upon  them,  a  monetary  independence  from 
charity. 


234  How  to  make  Money  make  Money, 


CHAPTER  XIX. 


INVESTMENTS. 


Distinct  branch. — To  know  how. — Great  idea. — Whole  against  one. 
— Banks  for  savings. — Life  insurance. — Bond  and  mortgage.— 
Swiftest. — Why  ? — Lawyer  and  security. — Bank  stocks. — Inves- 
tigate.— Paid  a  dividend. — Subscription. — Government  bonds. — 
Railroad  stocks  and  bonds. — Good. — Manufacturing  stocks. — 
Some  speculative. — Fire  insurance  stocks. — Good  and  bad. — 
Money  stocks. — Some  pay. — Class  not  good. — Petroleum. — Gas 
stocks. —  Profitable. —  Monopolies. —  Life  insurance  stocks. — 
Mutual  cash.  —Large  dividends. — Other  stocks. — Collaterals. — 
Movable  property. — Largest  fortunes. — Real  estate. — Richest 
men. — Location. — Double  increase. — Vacant  lots. — Little  trou- 
ble or  danger  of  loss. — Changes. — Skill  in  judgment. — One  of 
the  means. — Appropriate  building. — Some  gifted. — Not  worth  a 
snap. — Indulging  principle. — How  to  approach  an  investment. 
— Money  will  command  security. — Can't  get  it  afterwards. 


The  reader  must  understand,  what  is  not  generally- 
supposed,  that  he  now  enters  upon  a  distincl  branch  of 
money-making.  Though  labor  and  money  have  necessa- 
rily been  combined,  in  many  of  the  preceding  chapters, 
to  make  money  ;  yet  the  purely  making  money,  with 
money,  is  a  distinct  trade  ;  and  the  failure  of  many  to 
know  this  fact,  has  led  to  great  losses.  The  man  who 
has  made  his  dollar,  and  wishes  to  make  it  earn,  or  work, 
has  arrived  at  a  point,  where,  to  do  it  to  advantage,  he 
must  know  how,  or  his  dollar  will  very  soon  take  its  de- 
parture into  the  pocket  of  some  one  who  understands 
the  trade,  and  is  keener  and  shrewder  than  himself. 


And  how  to  Keep  it.  235 

No  one  can  be  safe  in  the  possession  of  money,  for 
investment,  who  does  not  come  up  fully  to  appreciate  this 
idea.  Toil,  labor,  saving,  and  self-denial,  are  often  sacri- 
ficed through  this  ignorance  ;  wealth  and  comfort  are 
swept  away,  and  poverty  and  distress  take  their  places  ; 
and  such  people  wonder  why  their  lot  is  so  hard  in  the 
world.  But  when  they  will  reflect,  for  a  moment,  that 
the  whole  world  are  after  just  what  they  have  got  ;  and 
every  device  that  cunning  and  ingenuity  can  devise  are 
brought  to  bear  to  obtain  it,  is  it  strange  that  one  cannot 
resist  the  whole?  There  is  no  trade  so  intricate  as  the 
investing  of  money  safely ;  but  like  the  mechanic  art, 
when  once  learned,  how  easy,  and  how  simple ! 

No  one,  then,  having  money  to  invest,  should  under- 
take to  do  so,  without  knowing  the  exacl  value  of  the 
thing  taken  in  exchange  for  money.  The  most  simple, 
however,  is  the  Savings  Institution,  where  the  depositor 
has  only  to  inquire  the  general  standing  of  the  bank,  and 
then  make  the  deposit,  and  the  money  will  draw  an  in- 
terest, if  at  dates  less  than  six  months,  of  five  per  cent. ; 
and  if  allowed  to  remain  longer,  six  per  cent,  per  annum. 
Another  mode,  equally  simple,  is  to  take  a  ten-year  en- 
dowment policy,  in  the  best  mutual  cash  company,  in 
which  you  will  be  entitled  to  a  share  of  the  profits,  which 
will  aid  in  payment  of  premiums.  You  will  get  your  six 
per  cent,  per  annum,  and  have  your  life  insured  at  the 
same  time.  This  is  preferable  to  the  savings  bank,  if 
you  have  capital  to  go  into  it,  and  be  sure  of  making  your 
payments.     See  chapter,  Life  Insurance. 

These  two  modes  are  within  the  reach  of  the  smaller 
amounts  of  money.  To  those  having  larger  sums,  bond 
and  mortgage  on  real  estate,  at  seven  per  cent,  is  the 
very  best  means  of  investing  money  for  those  who  are 


236  How  to  make  Money  make  Money, 

not  skilled  in  financering ;  and  it  is  believed  to  be  the 
swiftest  means  ever  yet  put  upon  any  money-making  course. 
The  legal  rate  of  interest  in  some  States  is  higher,  and 
in  some  lower,  than  seven  per  cent.  The  legal  rate  of 
interest  in  any,  on  bond  and  mortgage,  is  the  surest  way 
to  accumulate.  The  reason  for  this  is  apparent  on  reflec- 
tion, and  the  result  is  secured  by  a  principle  that  is  all- 
important  in  money-making. 

If  the  amount  loaned  is  properly  apportioned  to  the 
value  of  the  property,  the  security  is  perfect;  this,  how-, 
ever  depends  upon  the  lawyer  engaged  to  supply  the 
deficiency  of  knowledge  in  the  lender,  to  examine  every 
particular  of  the  security  offered,  to  see  if  any  flaw 
exists  or  intervenes.  Now  let  every  one  who  has  money 
to  invest  stop  just  here,  and  glean  a  lesson  never  to  be 
forgotten.  If  the  lender  intends  to  invest  in  any  othet 
security,  take  the  same  pains  to  get  an  opinion  of  its 
value  by  one  skilled  in  that  knowledge.  You  can  your- 
self determine  what  would  be  the  value  of  your  security 
if  you  are  not  a  lawyer,  and  undertook  to  loan  your 
money  on  bond  and  mortgage,  which  is,  taking  the  bor- 
rower's note  with  the  land  as  collateral  security,  if  you 
could  not  ascertain  positively  that  you  had  the  land  as 
security  or  no. 

The  next  simplest  and  most  secure  investment  is  in 
dividend-paying  bank  stocks.  This  again  requires  inves- 
tigation, though  how  many  there  are  who  simply  buy 
such  stocks  without  one  step  taken  to  investigate  their 
value,  or  making  a  single  inquiry  of  any  one  skilled  in 
such  knowledge  !  The  books  of  a  bank  are  always  open 
for  inspection,  and  he  who  has  got  into  his  brain  the 
value  of  money  will  look  to  see  for  himself,  or  engage 
some  one  to  do  so  as  to  the  whole  state  of  its  affairs,  before 


And  how  to  Keep  it.  237 

putting  his  money  into  the  stock  of  such  an  institution. 
Especially  should  the  character  of  the  officers  be  looked 
to,  and  their  style  of  conducting  the  business  be  scruti- 
nized closely.  Do  not  presume,  because  they  have  an 
imposing  banking-house,  and  a  large  number  of  em- 
ployes, that  this  is  the  base  of  security,  and  will  furnish 
sure  dividends  for  your  money.  Investigate — investigate, 
and  take  advice. 

Never  invest  in  any  stock  till  it  has  paid  a  dividend. 
As  well  might  you  entrust  your  money  in  the  hands  of  a 
man  calling  himself  a  merchant,  and  setting  up  his  sign 
to  trade,  who  has  never  in  his  life  yet  made  a  dollar. 
He  may,  perchance,  succeed,  and  so  may  the  stock 
divide,  but  the  surest  way  is  to  let  others  take  such 
risks  ;  those  that  can  afford  to  lose  ;  but  those  who  have 
limited  means  ought  not  to  run  such  chances.  Their 
little  is  their  all,  and  certainty  and  positive  security 
should  hang  around  every  dollar. 

On  the  other  hand,  no  one  who  thus  invests,  even  the 
capitalist,  expects  to  lose ;  and  regular  subscriptions  to 
bank  stocks,  as  means  of  investment  when  the  character 
of  the  officers  to  manage  them  is  well  known,  may  not 
be  regarded  as  unsafe  ;  and,  too,  there  is  sometimes  an 
advantage  in  being  among  the  first  subscribers  to  such 
stocks,  for  the  subscriptions  are  at  par,  and  when  once 
filled  up,  the  stock  cannot  be  got,  except  at  an  advance. 
Such  cases  of  investment  are  proper  subjects  for  advice 
of  skilled  financiers. 

Government  bonds  and  government  securities,  are 
regarded  by  financiers  as  safe  and  good  investments 
without  inquiry,  though  the  rate  of  interest,  till  quite 
lately,  has  been  low  in  comparison  with  other  equally 
good  securities.     But  they  are  more  in  demand  by  large 


238  How  to  make  Money  make  Money, 

than  by  small  capitalists.  Being  as  safe  as  any  security, 
they  take  rank  as  among  the  best  of  the  land.  State 
bonds,  of  various  issues,  are  sought  after  in  like  manner. 
These  securities,  however,  by  the  manipulations  of  poli- 
tics, generally  are  below  par,  and  some  are  quite  low  in 
the  market. 

Dividend-paying  railroad  stocks  and  bonds  are  good 
securities,  and  form  a  large  class  of  profitable  invest- 
ments. They  have  a  good  prospective  value,  also,  from 
the  fact:  that  business  is  constantly  on  the  increase, 
and  greater  experience  in  construction  and  in  running 
reduces  yearly  their  expenditures.  From  necessity,  too, 
they  are  compelled  to  hold  large  amounts  of  real  estate, 
which  increases  in  value.  Such  stock  and  bonds  judici- 
ously purchased,  cannot  fail  to  be  productive  of  income,  and 
the  basis  is  constantly  growing  more  and  more  valuable. 

Manufacturing  stocks  have  been  the  source  of  large 
fortunes,  and  also  of  heavy  losses.  There  are,  however, 
certain  manufacturing  stocks  which  pay  not  only  well, 
but  exorbitantly.  From  the  nature  of  things,  such  large 
profits  engender  competition,  and,  in  the  long-run,  it  is 
doubtful  whether  they  are  more  profitable  than  bond  and 
mortgage  or  bank  stocks,  which  pay  less  dividends,  but 
are  more  sure.  The  general  rule  of  business  applies  to 
them,  the  more  profit  the  greater  risk  of  loss.  In  certain 
sections  of  the  country  they  are  favorite  investments, 
and  the  inducement  of  heavy  gains  will  always  render 
them  active  as  investments  to  the  more  speculative  class 
of  minds.  Still  there  are  manufacturing  stocks,  founded 
on  the  making  of  staple  articles,  under  careful  and  eco- 
nomical management,  which  always  pay  a  remunerative 
dividend,  with  a  certain  amount  of  safety  and  security  to 
those  investing. 


A?id  how  to  Keep  it.  239 

Fire  insurance  stocks  have  been  favorite  investments. 
When  they  do  pay  they  pay  largely,  but  as  a  class  of 
investments  they  have  proved  speculative,  and  under  cer- 
tain circumstances  total  loss  has  been  the  result.  There 
are  periodical  times  when  goods  are  falling  and  trade 
dull,  when  those  holding  such  securities  would  do  well  to 
sell  and  reinvest,  if  they  desire,  when  goods  are  on  the 
rise  and  trade  brisk.  Marine  and  inland  insurance  has 
generally  been  good  paying  stocks,  but  for  the  past  five 
years  severe  losses  have  occurred.  Though  not  so  risky 
as  fire  stocks,  they  neither  pay  as  high  dividends,  nor  are 
they  subject  to  such  danger  of  total  destruction. 

Mining  stocks  form  a  very  large  class  of  securities, 
such  as  they  are.  It  is  doubtful  whether  as  a  class  they 
have  ever  paid  a  profit.  While  fortunes  have  resulted  in 
gold,  silver,  and  lead  mines,  thousands  have  lost  every 
cent  thus  invested.  Coal  has  been  the  most  successful 
of  any,  as  its  consumption  is  based  in  necessity,  and 
hence  has  in  most  cases,  when  judiciously  entered 
into  and  carried  on  with  honesty  and  economy,  been 
paying.  A  safe  rule  in  mining  stocks  is  never  to  invest 
till  a  dividend  has  been  seen.  This  if  followed  would 
have  saved  many  a  man  a  fortune,  and  the  ground  being 
rooted  up  in  vain  in  search  of  hidden  treasure.  Petro- 
leum stocks  need  no  praise  or  censure. 

Gas  stocks  have  been  very  remunerative,  and  always 
will  be  as  long  as  the  present  system  is  followed.  They 
are  monopolies  both  as  to  price  and  quality  of  the  article 
furnished.  The  result  is,  they  make  just  such  quality  of 
gas  as  they  please,  and  sell  it  for  just  what  price  they 
choose  to  charge,  and  hence,  is  there  any  wonder  why 
they  should  not  make  large  dividends  and  heavy  profits  ? 

Life  insurance  stocks,  on  the  cash  principle,  have  been 


240  How  to  make  Money  make  Money, 

profitable  investments,  and  would  so  continue  if  business 
could  be  procured ;  but  its  profitableness  has  brought 
up  mutual  cash-paying  premium  companies,  which  are 
securing  all  the  business  by  giving  to  the  insured  the 
benefit  of  the  profit  to  help  pay  their  annual  premiums. 
In  this  department  the  Mutual  Life  is  then  a  good  invest- 
ment for  the  insured,  as  the  dividends  in  the  most  suc- 
cessful company  now  in  operation  averages  about  forty 
per  cent,  upon  the  annual  premiums  falling  due. 

There  are  many  other  stocks,  too  numerous  to  men- 
tion particularly,  which  are  good  investments,  but  those 
named  are  the  principal.  Every  stock,  however,  before 
being  taken  should  be  thoroughly  investigated,  and  the 
principle  laid  down  heretofore  is  really  the  only  safe  one 
in  stock  investment,  that  they  should  first  show  a  divi- 
dend. There  are  so  many  combinations  and  varieties  of 
money  making  or  money  losing,  that  no  more  definite 
rule  can  be  given  to  guide  those  investing. 

Stocks  and  bonds  form  but  a  small  portion  of  invest- 
ments for  money-making.  Notes  of  hand  are  both 
bought  and  held  as  collateral  security  for  money.  This 
should  not  be  done  by  any  who  are  not  thoroughly 
acquainted  with  the  business  :  otherwise  an  almost  cer- 
tain chance  of  loss  results.  Loans  are  made  on  stocks 
and  bonds  in  like  manner ;  but  when  the  value  of  the 
stocks  or  bonds  are  known,  the  risk  is  not  so  great,  and 
can  be  done  with  comparative  safety  by  those  not  skilled 
in  judging  of  credits. 

Investments  are  also  made  in  all  kinds  of  movable 
goods,  with  a  view  to  sale  or  use,  for  a  profit.  They  can 
hardly  be  considered  investments,  in  the  strict  sense  of 
the  word,  but  as  money  is  parted  with  for  them,  it  is 
necessary  to  point  out  the  chances  of  loss  or  gain  by  the 


And  how  to  Keep  it.  241 

purchase.  Here  the  greatest  care  must  be  taken  that 
the  value  given  shall  not  be  above  the  regular  market 
value,  and  as  much  below  as  the  circumstance  of  the  case 
will  allow  In  that  event,  no  loss  will  accrue,  but  a  gain 
by  the  sale.  To  do  this,  requires  knowledge  and  skih 
of  a  peculiar  kind,  only  attained  by  experience  and  prac- 
tice. 

The  largest  fortunes  made  in  this  country  have  been 
by  investments  in  real  estate.  But,  like  others,  they 
must  be  made  with  sound  judgment,  and  forecast  of  util- 
ity, or  loss  may  result  in  some  few  instances,  but  as  a 
general  rule,  all  are  more  or  less  successful.  The  richest 
men  in  New  York  have  made  the  bulk  of  their  huge  for- 
tunes by  real  estate,  though  some  have  made  by  merchan- 
dize in  conjunction.  Every  part  of  the  country  has,  in 
like  manner,  had  its  smaller  results  in  this  way,  but  the 
large  cities  have  been  the  most  shining  examples. 

The  investment  in  real  estate  is  certain  if  it  be  located 
upon  any  of  the  leading  streets  ;  first,  for  an  income  equal 
if  not  greater  than  can  be  had  by  any  other  equal  secu- 
rity ;  and  second,  by  a  continuous  percentage  added 
thereto  yearly  for  increase  in  value.  How  long  or  how 
far  this  will  continue  no  one  can  tell ;  but  it  has  continued 
and  promises  still  to  continue.  Thus,  within  twenty 
years,  real  estate  which  sold  then,  now  sells  for  one  thou- 
sand dollars  for  one  invested.  Many  think  that  such 
opportunities  never  will  occur  again.  This  is  a  mistake. 
The  same  chances  now  exist  of  making  investments  in 
this  way  that  ever  have  been. 

There  are  to-day  plenty  of  vacant  lots,  and  even  im- 
proved property  that  will  largely  increase  over  regular 
interest,  but  not  possibly  in  the  time  named — one  thou- 
sand to  one.     Vacant  lots  will,  if  in  proper  localities,  pav 


242  How  to  make  Money  make  Money, 

a  very  large  interest  over  seven  per  cent.  It  is,  toOj  the 
cleanest  and  snuggest  investment,  requiring  no  attention, 
and  giving  a  certain  return.  The  improved  pays  a  regu- 
lar interest,  and  if  in  the  right  lines  will  pay  immensely 
by  increase  in  value. 

Vacant  lots  can  always  have  some  light  improvement 
which  will  part  pay  interest  on  first  cost,  if  not  the  whole, 
leaving  the  yearly  increase  in  value  a  splendid  dividend 
on  the  investment.  Then  there  is  no  anxiety  about 
honest  cashiers,  or  the  vicissitudes  which  attach  to  almost 
every  other  kind  of  property.  The  tenant  may  fail  to 
pay  a  month,  or  a  quarter's  rent,  but  your  capital  is  there 
intact.  Real  estate  investments  resemble  more  nearly 
the  accumulations  of  the  savings  institutions,  because 
your  compound  interest  is  added  from  time  to  time  in  the 
regular  march  of  increase  in  value,  while  if  the  increase 
is  applied  to  the  purchase  of  other  real  estate  the  increase 
is  rapid  and  immense. 

There  is  no  other  investment  that  is  not  in  danger, 
though  it  may  be  remote,  of  total  loss  of  interest  and 
principal.  It  is,  therefore,  considered  the  very  best  and 
safest  of  all  means  of  improving  money.  But  to  those 
who  are  so  situated  that  they  cannot  give  attention 
to  such  business,  the  bond  and  mortgage  at  seven 
per  cent,  stands  next.  To  invest,  however,  to  advantage, 
the  opinion  of  men  skilled  in  value  of  real  estate  and  the 
best  locations  should  always  be  obtained.  But  when 
once  invested,  do  not  sell  without  business  should  show 
indications  of  leaving  the  location  ;  then  sell  and  reinvest 
in  the  direction  of  the  change. 

By  watching  the  drift  of  things  an  experienced  dealer 
can  always  foretell  by  certain  signs  when  a  new  state 
of  things  will  spring  up,  and  when  property,  which  has 


And  how  to  Keep  it.  243 

remained  dormant  for  some  time,  will  suddenly  be 
brought  in  market  at  greatly  advanced  rates.  But  gene- 
rally speaking  any  real  estate  is  a  good  investment  that 
will  pay  current  expenses  and  seven  per  cent,  on  cost,  as 
the  progress  of  the  country  will  of  a  certainty  cause  it 
to  increase  in  value. 

One  of  the  means  of  judging  the  value  of  parts  of 
lots  as  compared  with  the  whole,  may  be  stated  as 
follows  :  the  first  twenty-five  feet  from  front  of  a  hundred 
foot  lot  is  worth  one-half  of  the  whole;  the  first  fifty 
feet  is  worth  three-quarters  of  the  whole ;  the  first 
seventy-five  feet  is  worth  ninety  per  cent,  of  the  whole. 
This  rule  will  apply  generally  on  any  important  street ; 
when  the  street  is  not  a  business  one,  but  one  for  private 
residences  only,  the  front  decreases  somewhat  in  value 
in  proportion  to  the  rear. 

As  a  general  rule  for  the  improvement  of  real  estate, 
too  much  value  in  building  in  proportion  to  the  value  of 
the  lot  may  prove  a  loss.  There  should  be  a  judicious 
apportionment  of  the  one  to  the  other,  but  a  little  show 
on  the  front  will  always  pay  well.  There  is,  however,  no 
species  of  investment  that  requires  more  sound  judgment 
and  peculiar  tact  to  hit  just  right  always,  both  as  to  price 
and  location,  than  this,  and  any  one  investing  can  well 
afford  to  pay  a  skilful  judge  a  round  commission  to  locate 
him  right.  There  are  many  extensively  engaged  in  the 
business  whose  opinions  are  not  worth  a  snap,  while 
there  are  others  who  will  never  make  a  mistake. 

Some  are  gifted  in  this  way,  while  others  with  ever  so 
much  practice  seem  unable  to  get  hold  of  the  true  under- 
lying principle.  Some  men  are  naturally  money-makers 
in  merchandize,  while  others  are  blunderers  forever. 
Much  more  could  be  said  on  investments,  but  space  will 


244  How  to  make  Money  make  Money, 

not  permit.  Let  any  one  who  has  money  and  wishes  to 
make  it  make  more  money,  consider  what  he  has  in  hand, 
and  let  him  approach  an  investment  as  he  would  his 
bitterest  personal  enemy,  looking  out  at  every  step  for 
an  assault.  No  matter  what  you  invest  in,  hold  your 
money  till  you  get  its  full  equivalent  in  value,  and  that, 
too,  made  as  secure  as  security  will  make  it ;  remember- 
ing that  while  you  hold  the  money  it  can  and  will  com- 
mand any  security  you  ask.  When  you  have  parted 
with  it  you  cannot  get  more  than  you  have. 


And  how  to  Keep  it.  245 


CHAPTER  XX. 


HOW    MONEY    IS    LOST. 


Endorsing  paper. — Lending  money. — Obje6t. — Inquiry. — Lose  friend 
and  money .; — Take  and  give  security. — Loss  on  notes  of  hand. 
— Credits. — How  avoided. — No  change  probable. — Loss  to  a 
dead  certainty. — Reasons  for  crediting. — Profit  the  bait. — 
Short  notes  remedy. — Small  and  large  transactions. — Don't 
save  under  forty. — Why  ? — Reason. — Paper  moonshine. — Loss. 
Reasoning. — Others  controlled. — Million  of  moonshine. — Now 
he  controls. — Plenty  of  dollars. — Safe  rule. — New  enterprises. 
Schemers. — Crafty  individuals. — Seductive  talk. — See  dividends 
first. — Petroleum  and  7  per  cent. — Entanglements. — Responsi- 
bility.— Good  rules. — Pay  lawyer  to  keep  out  rather  than  get 
out. — Stock  speculations. — Stock  investments. — Follow  same 
course. — Injudicious  investments. — Same  old  story  repeated. — 
Gold  mine  in  the  sun. — Petroleum  well. — Millions  preceded. 


To  those  who  have  had  experience  in  this  way  no  expla- 
nation is  necessary,  and  few,  probably,  will  be  benefited 
by  telling  it  to  them.  But  the  object  of  this  book 
would  not  be  accomplished  without  a  rehearsal  of  what 
every  one  who  has  handled  money  or  valuables  knows 
One  prolific  source  of  loss  is  endorsing  paper  not  youi 
own,  and  in  which  you  have  no  interest  in  the  profits  01 
results  flowing  from  it.  Why  do  you  do  it  then  ?  Pro- 
bably to  aid  a  friend  or  assist  another  to  get  what  he 
cannot  obtain  without  your  aid.  You  lend  him  then 
your  capital,  without  interest  generally,  and  without 
receiving  any  benefit,  except  possibly  a  return  of  the 
favor.     If,  for  a  return  of  the  favor,  you  run  a  double  risk 


246  How  to  make  Money  make  Mojiey, 

to  make  one  profit,  which  is  poor  financiering  at  best 
If  to  oblige  a  friend  you  are  helping  him  to  do  what  he 
cannot  do  himself,  thereby  overstraining  his  ability,  and 
helping  him  probably  to  a  loss. 

You  are,  then,  not  doing  him  a  friendly  act ;  but  one  by 
which,  if  not  successful,  you  will  lose  your  friend  and  your 
money  too.  If  your  friend  has  placed  himself  where  he 
must  have  aid,  it  is  certainly  better  that  he  should  suffer 
the  consequences,  than  an  innocent  party  who  has  had  no 
hand  in  the  matter.  By  refusing  to  endorse,  you  keep 
but  your  own,  which  no  man  could  complain  of,  and  if 
your  friend  be  worth  keeping,  you  will  retain  him  also. 
The  same  can  be  said  of  lending  money.  But  if  you  do 
either,  remember  that  your  money  is  as  good  to  you,  as 
theirs  to  a  Bank,  and  the  Bank  would  require  security. 
Therefore  take  security  if  you  endorse  or  lend,  and  give 
it  in  case  you  require  either  yourself.  No  one  can  com- 
plain if  you  adopt  that  as  a  rule  of  action. 

The  largest  source  of  loss  is  the  parting  with  money 
or  valuables  for  notes  of  hand,  or  credits  without  notes. 
On  this  subject  much  has  already  been  said.  In  this 
lies  most  of  the  causes  of  failure  of  merchants  or  traders 
of  any  grade.  But  says  the  reader,  "  How  can  this  be 
avoided  ?  Goods  must  be  sold,  and  they  cannot  be  sold  to 
any  extent  without  crediting,  and  if  you  do  credit  en- 
dorsers cannot  always  be  had  ? "  True  ;  the  way  things 
are  done  generally,  the  propositions  are  correct,  and 
what  are  the  results  ?  Failure  or  loss  ?  The  results  of 
statistics  in  mercantile  life  proves  the  fact  most  conclu- 
sively ;  and,  as  long  as  the  same  system  is  pursued,  the 
same  results  will  follow.  Then  we  say  yes  ;  go  on  and 
credit,  if  you  please,  and  reap  the  almost  universal 
penalty  in  failure  and  poverty  in  after  years. 


And  how  to  Keep  it.  247 

There  may  be  some,  however,  who  will  do  differently, 
and  desire  to  make  a  change  from  this  certain  road  of 
destruction.  To  these  the  pointing  out  the  causes  of 
failure  may  be  interesting,  instructive,  and  may  do  good. 
If  the  merchant  will  look  at  his  goods  as  somuch  money, 
why  will  he  part  with  them  on  any  less  security  than  the 
banker  or  financier,  who  is  generally  successful  ?  Until 
the  operator  can  ground  this  principle  in  his  credits,  failure 
is  almost  certain  ;  if  not  hopeless  failure,  loss  of  profits 
and  money  follows,  to  a  dead  certainty. 

The  reason  why  men  give  credits  in  this  way  is,  that 
they  are  allured  by  the  profit,  and  lose  sight  of  the  abso- 
lute money  engaged  ;  for,  let  any  one  investigate  the  mat- 
ter, and  he  will  see  that  if  no  profit  was  in  the  transact- 
ion, or  very  little,  the  credit  would  not  be  so  readily  given, 
if  given  at  all.  Then  the  principle  results  that  money  is 
lost  in  an  overstrained  desire  for  profit,  as  a  general  rule, 
though  it  may  be  lost  occasionally  where  this  principle 
does  not  enter.  Nor  need  the  merchant  say  that  busi- 
ness cannot  be  done  without  excessive  crediting. 

If  the  purchaser  cannot  give,  or  will  not  give,  endorsed 
paper  or  security,  if  he  is  worthy  of  credit,  let  him  give 
what  he  would  be  compelled  to  give  to  a  Bank — thirty, 
sixty,  or  ninety  day  notes.  Nor  should  these  be  taken 
without  the  utmost  scrutiny  ;  for  if  such  merchants  will 
realize  that  the  acceptance  of  such  a  note  might  be  the 
cause  of  his  failure,  he  would  be  very  cautious.  Experi- 
ence has  shown,  top,  that  there  is  not  as  much  danger  in 
loss  on  small,  as  on  large  transactions.  Men  generally 
lose  on  big  amounts,  and  such  would  be  the  philosophical 
reasoning,  if  experience  had  not  taught  the  fact.  No 
one  will  be  likely  to  go  wrong  in  taking  paper,  who  will 
adopt  the  banking  principle  of  time  and  responsibility. 


248  How  to  make  Money  make  Money, 

That  some  losses  will  occur,  even  under  such  a  severe 
rule  of  credit,  no  one  will  deny  ;  but  such  is  the  most 
perfect  plan  in  the  giving  of  credits  for  merchandise,  or 
other  valuables. 

Very  few  men — a  mere  fraction  of  the  whole — keep 
money  that  is  made  before  they  are  thirty-five  or  forty 
years  of  age,  in  general  trading  business.  Why  ?  Sim- 
ply because  men  will  not  profit  by  the  experience  of  oth- 
ers. Hence  the  same  routine  for  one  and  atl ;  and  if 
they  are  successful,  and  escape  the  rule,  it  is  good  luck 
if  not  good  management.  They  have  such  overwean- 
ing  confidence  in  their  own  judgments,  that  they  can  see 
what  others  can't,  and  only  discover  that  they  are  human 
when  their  money  is  gone. 

A  merchant  who  had  made  a  very  handsome  fortune 
in  paper  moonshine,  came  forward  with  it  to  breast  the 
storm  of  the  commercial  crisis  of  1836.  The  result  was, 
that  with  the  bankrupt  act:  which  followed,  and  the  crash 
of  the  time,  his  fortune  had  dwindled  to  a  mere  song. 
Being  a  young  man,  with  an  anological  mind,  he  set  him- 
self about  an  investigation  of  the  whole  matter,  to  see 
wherein  he  had  made  the  grand  mistake  that  lost  him  his 
years  of  labor.  The  conclusion  was,  that  he  had  put  his 
fortune  and  money  into  the  hands,  and  under  the  control 
of  others,  whose  interest,  upon  general  principles,  was  to 
keep  it,  rather  than  return  it.  He  saw  his  blunder,  and 
from  that  day  commenced  a  new  financial  life,  upon  the 
principle  that  he  would  never  put  a  dollar  of  his  money 
under  the  control  of  another  man.  He  has  lived  up  to  the 
principle  to  this  day ;  for,  as  he  says,  he  has  at  this  time, 
on  the  1836  investment,  in  interest  and  principal,  about 
one  million  of  dollars  in  the  hands  of  others,  which  is  as 
much  as  one  man  ought  to  have  out  at  a  time.     This 


And  how  to  Keep  it.  249 

principle,  carried  out,  has  led  to  investment  in  bond  and 
mortgage,  and  real  estate,  and  the  result  in  dollars  can 
be  easily  imagined. 

It  is  a  safe  rule  to  adopt  in  any  business,  and  will  in 
the  end  lead  to  the  most  money.  It  brings  the  trader  to 
sell  for  cash,  and  the  capitalist  to  avoid  dishonest  bank 
officers  and  scheming  men  who  control  moneyed  institu- 
tions. It  avoids  nearly  all  the  risks  of  losing,  and  brings 
money  directly  under  the  control  and  supervision  of  the 
one  who  takes  the  greatest  interest  in  its  preservation. 
Of  course  this  could  not  become  a  universal  rule,  nor  is 
there  any  danger  that  it  will ;  but  those  who  adopt  it  will 
find  their  dollars  when  they  want  them,  and  accumulation 
'  will  follow  as  a  necessary  consequence. 

Another  prolific  source  of  loss  is  the  placing  of  money 
into  new  and  untried  enterprises,  and  under  the  control 
of  schemers.  How  sane  men  can  do  such  things  is 
beyond  calculation.  There  are  enterprises,  of  course, 
which  are  worthy  of  investment ;  but  the  large  class  are 
devices  to  get  money  for  other  objects  than  the  legiti- 
mate dividend  proposed.  How  sweetly  and  eloquently 
the  crafty  individual  will  sit  by  your  side,  and  sing  his 
bewitching  song  of  high  dividends  and  safe  returns  ! 

Your  best  friend  he  may  be,  but  has  he  shown  by  his 
fortune  made  in  the  same  way  that  he  is  competent  to 
advise,  or  that  his  recommendation  is  worth  a  straw  ? 
Not  one  dollar  probably  can  he  show  that  he  has  made 
by  such  a  thing,  yet  there  are  men  who  will  become  so 
infatuated  by  "  his  talk  "  that  they  will  eagerly  grasp  the 
pen  and  set  their  names  to  paper  for  thousands,  and 
incur  obligations  for  thousands  beyond,  for  schemes 
about  as  likely  to  be  profitable  as  a  railway  to  the  moon. 
Where  is  there  a  guarantee  or  a  cent  of  security  in  the 


250  How  to  make  Money  make  Money , 

whole  thing  ?  Nothing  except  the  talk  of  some  one  who 
wishes  to  make  up  a  company,  a  stock,  or  a  scheme  to 
control  your  money  and  pass  it  gently  from  your  pocket 
to  his  or  one  of  his  associates. 

Such  people  will  quietly  sit  down  and  hear  a  long  stor\ 
about  an  enterprise  500,  1,000  or  5,000  miles  off,  and 
take  the  statement  second,  third,  or  fourth  hand,  and 
greedily  hand  out  the  money  to  the  man  who  could  not 
get  a  personal  loan  of  $500  on  his  note,  or  even  a  loan 
on  bond  and  mortgage  in  the  same  place  where  both 
resided,  without  abundant  security. 

People  having  money  in  possession  would  always 
do  well  to  hear  in  the  first  place  what  profits  are 
promised,  or  what  are  probable,  and  if  they  are  over  seven 
or  eight  per  cent.,  take  a  sudden  mistrust  of  the  thing 
and  fully  appreciate  that  some  one  is  after  your  money 
and  don't  intend  you  shall  get  it  back.  Never  mind  the 
dividends  promised  or  conceived.  If  they  can  be  made 
let  some  one  else  make  them,  and  wait  till  that  is  accom- 
plished before  you  risk  your  money.  Remember  always 
that  legal  interest  is  about  all  money  can  earn,  and  be 
sure  of  the  return  of  the  principal. 

If  all  the  money  that  has  been  spent  in  obtaining 
petroleum  had  been  invested  at  seven  per  cent,  in  bond 
and  mortgage,  this  account  would  be  far  ahead  of  the 
real  petroleum  capital  and  profit.  There  is,  however,  a 
fascination  about  making  a  sudden  fortune  that  will  con- 
tinue to  find  devotees  in  such  hazards.  But  some  there 
are  who  should  avoid  the  very  presence  of  such  things 
and  their  influences,  because  they  do  not  themselves 
understand  the  subject,  and  they  are  compelled  to  derive 
all  their  information  from  those  whose  interests  are  that 
your  money  should  go  to  help  theirs  or  their  interest. 


And  how  to  Keep  it.  251 

A  good  rule  for  any  one  who  has  money  is  to  keep 
away  from  all  entanglements  with  others.  Responsibility, 
when  the  amount  is  comparatively  trifling,  may  lose  you 
your  entire  estate.  Never  sign  a  paper,  or  your  name  to 
anything  that  you  do  not  fully  understand,  and  never  to 
a  contract  of  any  magnitude,  without  consulting  a  lawyer. 
The  trifle  you  would  pay  him  for  advice  may  save  you 
much  in  comfort  and  money. 

No  safer  mode  of  action  can  be  adopted  by  any  one 
than  keeping  aloof  from  all  intermingling  of  interest  and 
responsibilities,  and  managing,  under  the  best  advice,  your 
own  capital ;  keeping  always  it,  or  as  good  security  for 
money  as  it  is,  in  your  own  hands.  This  will  secure  all 
the  comfort  that  money  can  bring,  because  you  get  your 
income  and  avoid  all  legal  questions  and  controversies  ; 
and  if  a  man  wishes  to  be  happy,  let  him  keep  out  of  the 
law,  and  the  way  to  keep  out,  is  to  see  to  it,  that  all  your 
business  is  transacted  legally  correct,  for  the  best  money 
any  one  can  spend  is  to  pay  a  lawyer  to  keep  him  out  of 
controversies,  rather  than  pay  him  to  get  him  out. 

Much  money  is  lost  by  speculation  in  things  that  have 
little  or  no  intrinsic  value.  Among  these,  the  most  im- 
portant is  speculation  in  stocks.  Those  who  have  tested 
this  subject  are  enabled  to  certify  that  it  is  the  quickest 
and  surest  means  of  getting  rid  of  money  that  is  known. 
Some  make,  to  be  sure,  but  they  make  but  to  lose  on  the 
next  turn  of  the  wheel.  Any  one  may  by  a  single  opera- 
tion make,  but  if  the  thing  be  followed  up,  there  is  but 
one  result.  Millions  have  been  lost  by  this  process. 
There  is  quite  a  difference  between  speculating  in  stocks 
and  buying  them,  when  they  are  under  value  in  the  mar- 
ket for  investment.  This  can  be  done  always  with  safety. 
But  buying  stocks  that  do  not  pay  a  legitimate  dividend, 


252  How  to  make  Money  make  Money, 

in  the  hope  of  selling  to  some  one  else  as  foolish  as  the 
buyer,  is  a  strange  infatuation. 

In  looking  over  the  long  line  of  our  wealthy  men,  and 
*"he  vast  amount  of  capital  sunk  in  this  style  of  business, 
any  reasonable  person  would  suppose  such  operations 
would  cease  some  day.  But  they  not  only  continue,  but 
increase  in  volume.  It  is  like  the  excitement  of  war, — 
the  more  soldiers  that  fall  in  battle,  the  more  will  rush 
into  its  deadly  carnage.  It  is  just  so  in  these  specula- 
tions ;  the  failure  and  disappearance  of  one  large  house, 
or  operator,  gives  room  for  half  a  dozen  smaller  ones 
who  fancy  they  can  avoid  what  great  experience  has  not 
avoided,  and  make  some  money  where  others  have  lost 
it.  Such  is  human  nature,  and  such  it  will  continue,  all 
the  books,  experience,  and  advice  in  the  world  to  the 
contrary  notwithstanding. 

Money  is  lost  in  injudicious  investment ;  that  is,  pay- 
ing more  for  things  than  they  are  worth.  It  sometimes 
happens,  too,  that  circumstances  beyond  the  control  of 
the  most  sagacious  will  cause  depreciation  in  value  of 
that  which  at  the  time  was  valuable.  The  burden  of  such 
chances  can  be  avoided  by  good  judgment  and  watchful- 
ness, taking  care  to  sell  in  proper  time,  if  such  circum- 
stances arise.  These,  then,  are  a  few,  and  it  is  believed 
the  most  common  sources  of  the  loss  of  money.  So 
peculiar,  however,  is  the  action  of  the  human  mind  on 
this  subject,  that  although  individuals  see  these  causes 
in  action  daily  around  them,  and  book  after  book  be 
written  reciting  them,  little  can  be  hoped  for  in  a  radi- 
cal change,  of  these  almost  certain  results.  The  reader 
may  say  to  himself,  all  this  is  very  well  in  its  way,  and 
turn  from  its  reading  to  lend  an  irresponsible  individual 
money,  or  subscribe  to  an  extraordinarily  productive  gold 


And  how  to  Keep  it.  253 

mine  in  the  sun,  or  buy  stock  in  a  petroleum  well  never 
sunk,  or  that  never  will  be  sunk,  and  only  wake  up  to 
the  real  situation  when  his  money  has  gone  where  mil 
lions  have  preceded. 


254  How  to  make  Money  make  Money, 


CHAPTER  XXI. 


EARNINGS  AND    SAVINGS. 


Object  of  Saving.--Duties.— Position  in  Life. — No  meanness  or  penu- 
riousness.— Ten  per  cent,  of  earnings.— Fifteen  per  cent  reserve. 
— Example  — All  increase. — Net  profits. — Fortune  should  spend 
freely. — Spending  others'  money. — Wife  responsible. —  Fine 
things. — Influence. — Husband  labors. — The  Grundies. — Smash 
up.  —Who  responsible. — Ignorance  all  around. — Husband  same 
results. — Squanders. — Wife  saving. — People  don't  think. — No 
fixed  principles. — Never  suspect. — Sad  reality.— Great  Revolu- 
tion.— What  rule  ? — Spend  a  little  less. — Principle  of  life. — The 
Savings  Bank. — Real  nothings. — No  pleasure  or  position. — 
Surroundings  and  Associates. — Think  how  much  it  is. — How 
remedied. — Change  of  base. — Money  improves  position. — Lad- 
der.— Cloud  of  hope  and  desire. — Platform.--Calculate  inde- 
pendence.— Example. — Use  of  tables. — Great  idea. — Tables  of 
earnings  and  savings. 

We  have  now  come  to  the  whole  aim  and  gist  of 
money-making,  considered  as  a  means  of  accumulation. 
So  far  as  the  object  of  this  work  is  concerned,  the  goal 
to  be  arrived  at  is  the  simple  independence,  or,  to  that 
point  when  sufficient  money  is  accumulated  and  safely 
invested,  so  that  the  individuals  or  those  dependent  upon 
them  shall  be  out  of  danger  of  falling  a  charge  to  the 
public,  or  their  friends  ;  we  have  the  right  to  ask  this  of 
all,  because,  as  has  been  said  before,  this  is  a  moral  ana 
political  duty.  But  we  do  not  wish  to  be  considered  as 
asking  more,  though  we  may  have  gone  further  and 
shown  how  fortunes  can  be  made. 

Nor  can  we  ask  that  more  savings  shall  be  made  than 


And  how  to  Keep  it.  25^ 

will  accomplish  this,  and  while  in  like  manner,  we  may 
show,  that  by  further  accumulations  fortunes  will  result. 
As  the  foundation,  then,  we  claim  that  till  the  indepen- 
dence is  secured  the  individual  has  no  moral  or  political 
right  to  spend  more  than  is  necessary  for  his  support,  in 
a  way  commensurate  with  his  position  in  life.  All  ex- 
travagances and  useless  expenditures  should  be  avoided, 
and  a  persistent  course  of  rigid  economy  pursued  till  the 
independence  is  accomplished. 

Nor  should  they  descend  to  meanness  or  penurious- 
ness,  but  instead  of  gratifying  every  want  should  curtail 
a  portion,  and  the  principle  laid  down  on  page  229  for 
the  professional  salaried  person  is  a  sound  one  foi 
every  grade  of  life.  Consider,  as  in  that  case,  that  ten 
per  cent,  of  your  earnings  is  not  your  own,  but  that  you 
are  your  own  trustee  to  secure  your  own  independence 
and  fifteen  per  cent,  to  be  deposited  in  a  Savings  Institu- 
tion as  a  reserve  fund  to  help  out  in  case  of  accident. 
Let  the  ten  per  cent,  be  invested  in  premiums  of  a  ten- 
year  endowment  policy  in  proportion  to  your  means, 
and  this  part  of  your  duty  in  life  is  done,  and  if  you  do 
more  afterward  and  get  a  fortune,  well. 

Taking  any  view  of  the  case,  either  of  one  seeking  a 
fortune  or  one  seeking  an  independence,  the  operation 
of  this  cardinal  rule  will  steady  and  make  prosperous 
his  whole  financial  life.  Suppose  a  merchant,  or  trader 
of  any  kind,  is  in  the  receipt  of  $10,000  per  annum  of 
profit,  he  takes  $1,000  and  invests  in  premiums  of  a  ten- 
year  endowment  policy,  and  he  puts  $1,500  into  a  Savings 
Bank  to  accumulate  at  six  per  cent,  as  a  reserve  fund. 
If  he  lives  till  the  ten  years  expires,  his  policy  will  fall  in, 
and  if  taken  in  a  Cash  Mutual  will  amount  at  last  to 
$12,615.64  besides  having  his  life  insured  in   the  mean 

11* 


236  How  to  make  Mo?iey  make  Money, 

time,  and  his  $1,500  per  annum  will  be  $18,923.46  and 
the  two  added  together  will  amount  to  $31,539.10. 

Now,  if  he  has  paid  his  expenses  and  has  the  $7,500 
invested  in  his  business,  and  it  has  accumulated  at  the 
rate  of  eight  per  cent,  he  would  have  from  this  source 
$111,660.05,  in  all  $143,199.15.  This  same  rule  can  be 
applied  to  any  conceivable  income ;  the  main  feature 
being  the  life-endowment  policy,  by  which,  if  death 
occurs,  a  provision  is  left  for  those  dependent.  This  is 
especially  imperative  upon  every  married  man  on  enter- 
ing business.  No  matter  how  small  the  profits  may  be  : 
the  principle  is  the  same,  and  the  endowment  policy 
would  be  small  in  proportion. 

Net  profits  are  entirely  dependent  upon  expenses,  or 
at  least  nearly  so,  for  there  is  no  occupation  that  does 
not  afford  a  profit,  that  is,  more  income  than  is  required 
to  meet  necessary  expenses.  To  ensure  savings,  then,  the 
expenses  should  be  reduced  to  the  minimum,  which  will 
give  the  maximum  profit.  To  those  who  have  fortunes, 
the  more  they  spend,  and  consequently  the  less  they 
save,  the  better  for  the  community  at  large.  In  this  way 
money  is  put  in  circulation,  and  it  becomes  easier  for 
those  who  are  striving  for  it  to  get  it.  But  until  the 
independence  is  obtained,  the  rule  and  right  is  directly 
the  reverse.  They  have  no  right  to  spend  till  they  have 
accomplished  this  object,  for  the  chances  are  they  will 
spend  what  is  not  their  own. 

Nor  has  any  man  who  owes  others  the  right  to  spend 
more  than  is  necessary  to  support,  in  a  proper  manner, 
his  relative  position  in  life,  for  he,  in  like  manner,  will  be 
found  in  the  end  to  have  been  spending  money  belonging 
to  others  in  case  he  fails.  As  failure  is  one  of  the 
chances  of  trade,  he  is  not  only  honorablv,  but  morally 


And  how  to  Keep  it.  257 

bound  to  save  beyond  his  necessities  till  he  is  out  of 
debt,  then  he  can  do  as  he  pleases. 

It  then  becomes  a  close  question  to  decide  what  are 
necessary  expenses.  If  the  trader  apes  the  man  of  for- 
tune in  his  expenditures,  while  he  is  yet  owing  largely, 
the  result  may  be  most  certainly  conjectured.  If,  how- 
ever, he  lives  moderately  economically,  and  in  proportion 
with  his  income,  leaving  a  large  portion  of  it  to  the  good, 
success  will  attend  in  all  probability.  Expenditures 
depend  entirely  upon  the  determined  will  and  good  judg- 
ment of  the  person.  These  are,  in  nineteen  cases  out  of 
twenty,  governed  entirely  in  families  by  the  wife.  The 
general  rule  is  the  man  loses  outside,  the  wife  spends 
inside. 

The  old  saying  that  the  wife  can  throw  out  with  a  tea- 
spoon what  the  husband  can  throw  in  with  a  shovel,  is  a 
truism.  The  whole  question  of  savings  rests  mainly 
with  the  wife.  She  is  responsible,  and  she  alone,  for  the 
entire  success  as  a  general  rule.  The  man  is  usually 
satisfied  with  what  the  wife  is  satisfied  with.  She  is  in 
very  many  cases  responsible  direclly  for  the  failure  of  the 
husband.  She  must  have  a  fine  house,  fine  furniture, 
fine  clothing,  carriage  and  horses,  and  fine  everything, 
while  her  husband  is  trying  to  make  money.  She  hears 
of  his  income,  of  his  making  money,  and  of  large  opera- 
tions, and  not  knowing  the  course  of  trade,  naturally  sup- 
poses she  is  rich,  and  that  she  can  lavish  and  spend. 
She  says  to  her  plastic  husband,  "  Mrs.  Grundy  does  so- 
and-so,  and  she  has  no  more  money  than  we  have." 

Society,  dress,  parties,  balls,  furniture  and  every  sort 
of  expenditure  is  gone  into,  while  the  husband  makes 
shift  to  pay  his  notes  from  day  to  day,  and  may  be  strain- 
ing every  nerve  to  keep  his  head  above  water.     The  wife 


258  Hozv  to  make  Money  make  Money, 

still  drives  and  dashes  in  the  most  reckless  and  cruel 
manner,  because,  having  started,  she  cannot,  without 
losing  her  caste  among  the  Grundies,  fail  to  keep  up  her 
end  in  society.  The  husband,  with  no  more  power  to 
stay  the  extravagance  of  home  matters  than  to  stop  the 
current  of  Niagara  with  a  quill,  pays,  and  leaches  his  pro- 
fits from  day  to  day. 

The  end  finally  comes,  and  failure  follows,  and  then 
distress  often.  The  man  hardly  knows  why  he  has 
failed,  the  wife  knows  still  less,  never  for  an  instant  sup- 
posing that  she  herself  has  plunged  the  dagger  of  dis- 
grace into  the  heart  of  her  own  family.  She  will  never, 
or  at  least  has  never  sat  down  and  added  up  the  long  list 
of  follies  and  footed  them  up  in  thousands  on  thousands, 
spent  through  her  own  influence,  the  direct  cause  of  her 
husband's  misfortunes. 

Now  what  is  the  fundamental  cause  of  such  results  ? 
An  ignorance  on  the  part  of  both  the  husband  and  wife 
of  their  true  position.  The  wife  is  led  to  this  course  by 
the  vain  supposition  that  the  husband  really  and  truly 
has  the  means  to  support  it,  while  the  husband  often 
keeps  from  the  wife  the  real  state  of  his  affairs.  Both 
are  groping  in  the  dark  on  the  vital  point  of  their  future 
happiness  ;  in  truth,  anticipating  what  they  are  seeking 
for.  The  husband  on  the  other  hand,  by  a  similar  course 
unaided  by  the  wife,  often  brings  about  the  same  result. 

Fast  horses,  clubs,  suppers,  dinners,  and  numberless  ex- 
travagances squander  away  the  earnings,  while  the  wife  is 
at  her  humble  home  economical  and  saving. '  She  strains 
every  nerve  to  save,  while  the  heartless  or  heedless  hus- 
band fast  saps  the  foundation  of  their  property,  and  want 
follows.  Many  would  blame  both  husband  and  wife,  and 
:n  a  certain  sense  they  are  to  blame.     But  they  are  both 


And  how  to  Keep  it.  259 

more  to  blame  for  their  ignorance  of  the  true  principles 
of  living  than  for  the  fact.  Such  people  live  without 
thinking.  They  never  sit  down  and  calculate  upon  the 
course  they  are  pursuing,  nor  do  they  ever  refer  their 
actions  or  prospects  to  any  reasonable  coordinates. 

They  live  with  the  idea  that  living  is  life,  not  that  life 
is  for  a  living.  They  have  no  plan  of  action,  no  fear  of 
the  future,  as  the  child  has  no  fear  of  fire  till  his  experi- 
ence has  taught  him  that  the  burn  is  painful.  They 
never  have  failed  nor  been  in  want,  why  should  they 
know  what  it  is  ?  Those  thus  jeopardized  may  possibly 
read  this  book,  but  they  will  never  suspect  that  they  are 
in  danger  of  what  has  been  just  portrayed — by  no  means 
— while  to-morrow  may  bring  the  sad  reality. 

If  every  man  in  business,  and  every  woman  who  holds 
the  purse-strings  of  the  home  expenditure  could  be  early 
in  life  brought  by  reading  or  experience  to  appreciate 
the  terrors  of  want  after  affluence,  consequent  upon 
failure,  what  a  revolution  would  be  wrought  in  the 
world  !  The  dollar  that  would  or  might  prevent  such  a 
catastrophe  would  not  be  squandered  in  nothings  till  it 
could  be  done  without  danger — till  accumulation  of  sav- 
ings had  rendered  such  a  result  next  to  impossible. 

How  are  these  things  to  be  done  ?  Every  case  in  life 
is  a  different  one  ;  therefore,  no  rule  can  be  given  by 
which  all  can  act.  But  let  any  one  consider  carefully 
what  expenditures  in  the  course  of  a  week  he  can  avoid, 
that  he  determines  to  make  :  say,  once  less  to  the  the- 
atre, one  less  cigar  a  day,  one  less  drink,  one  less  party 
a  week,  and  so  on  ;  deny  yourself  something  every  day, 
and  put  the  money  into  a  pocket  provided  for  the  sav- 
ings. Do  this  for  a  short  time,  and  see  the  result.  If 
you  do  it  for  six  months  your  future  is  made,  for*  the 


260  How  to  make  Money  make  Money, 

habit  once  contracted  will  soon  run  into  a  principle  of 
life. 

Let  any  one  do  this  who  will  not  or  cannot  adopt  the 
plan  of  ten  per  cent.,  and  fifteen  per  cent.,  referred  to 
before,  and  when  the  week  comes  around  put  the  money 
aside,  or  place  it  in  a  Savings  Bank.  The  whole  object 
will  be  accomplished  ;  for  the  moment  any  one  has 
acquired  the  habit  of  saving  it  grows  upon  them.  Do 
not  undertake  to  be  mean  and  niggardly,  but  only  lay 
aside  a  part  of  your  current  expenditures  in  the  real 
nothings,  which  neither  give  pleasure  or  position,  and  a 
new  world  of  prosperity  has  opened  upon  your  path  in 
life. 

The  only  obstacle  to  such  a  course  lies  in  your  sur- 
roundings or  associates.  The  great  question  for  each 
one  to  decide  is  whether  you  will  live  to  please  them  or 
to  please  yourself,  and  for  your  own  prosperity  and  hap- 
piness. Whether  you  will  live  to  be  poor  and  dependent 
or  independent  and  beyond  fear  of  poverty.  To  this  end 
the  beginner  in  life,  by  looking  at  the  table  on  page 
seventy-eight,  will  see  how  many  dollars  of  his  indepen- 
dence or  fortune  he  spends  when  he  uselessly  throws 
away  a  dollar.  If  he  assumes  that  he  will  have  an  in- 
dependence at  30  years  of  age,  every  dollar  spent  at  20 
years  of  age  is  $2.10  at  30;  is  $4.14  at  40;  is  $8.14  at 
50;  is  $16.02  at  60;  is  $31.51  at  70;  and  is  $62.00 
at  80. 

The  most  satisfactory  and  startling  manner  that  this 
subject  of  unnecessary  yearly  or  daily  expenditure  can 
be  brought  to  the  mind,  is  to  keep  an  account  of  every 
cent  spent  in  the  course  of  a  year.  Then,  go  over  the 
list  and  select  such  as  were  unnecessary  or  could  have  been 
avoided  without  interfering  with  your  positive  position  in 


And  how  to  Keep  it.  261 

life.  Any  one  has  but  to  do  this  and  the  subject  will  be 
illustrated  to  that  mind  at  least.  Then,  to  make  the 
lesson  practical  and  Useful,  stop  where  you  are  in  expen- 
ditures, and  change  your  base,  to  a  saving  of  the  unneces- 
sary items,  and  a  few  years  will  show  the  magnitude  of 
the  result,  and  your  social  position  will  be  improved,  your 
entire  character  and  social  standing  will  have  insensibly 
changed  for  the  better. 

For  let  the  world  say  what  it  may,  money  alone  im- 
proves the  position  of  any  one,  and  if  they  possess  all 
the  other  qualities  of  the  educated  and,  refined  the  goal 
of  life  in  this  direction  is  reached.  Then  let  every  one 
remember  that  the  dollar  in  hand  can  be  invested  in  such 
a  way  as  to  make  one  round  in  the  ladder  opposition,  or 
it  can  be  foolishly  spent  and  leave  you  just  where  you  do 
not  desire  to  be,  at  the  foot  in  poverty.  The  great  trouble 
is  that  people  will  not  think,  will  not  stop  to  consider  a 
course  of  action  and  analyze  their  condition  and  what 
they  are  about,  but  heedlessly  push  on  in  an  indefinite 
cloud  of  hope  and  desire,  expecting  that  Dame  Fortune  is 
either  bound  or  not  to  see  them  through.  Dame  Fortune 
is  yourself,  and  the  sooner  you  find  it  out  the  sooner  you 
will  see  your  independence  or  your  fortune. 

We  cannot  leave  this  subject  without  again  calling 
attention  to  the  platform  recommended  in  page  229  for 
the  professional  salaried  person.  By  assuming  that  rule 
of  action  all  questions  of  savings  are  included  in  it.  If 
the  income  be  large  enough  the  ten  per  cent,  can  be 
directly  invested  in  bond  and  mortgage  at  seven  per 
cent,  as  a  permanent  fund  not  to  be  touched,  to  be  spent 
The  fifteen  per  cent,  can  be  invested  in  real  estate  or  in 
some  productive  security,  and  to  avoid  the  possibility  of 
Ihe  loss  in  business  operations  of  the  trust  fund  of  ten 


262  Hozu  to  make  Money  make  Money, 

per  cent,  for  the  benefit  of  the  dependants,  sucn  can  be 
placed  in  their  name  as  the  permanent  reserve  fund. 

Those  having  small  amounts  of  savings,  the  Savings 
Banks  are  the  only  places  where  such  funds  can  be  pro- 
perly put,  and  ten  per  cent,  of  receipts  thus  disposed  of 
will  soon  tell  a  handsome  amount  to  their  credit.  To  all 
such,  two  accounts  should  be  opened  with  the  Bank, 
one  the  permanent  fund  of  ten  percent,  the  other  as  much 
of  the  fifteen  per  cent,  as  is  possible  to  spare,  in  a  sepa- 
rate account.  Having  then  established  the  rule  adhere 
to  it,  and  your  independence  is  secured,  and  if  you  live 
long  enough  your  fortune  too. 

This  then  being  the  securest  machinery  to  bring 
about  a  result  which  all  desire,  let  no  one  delay  in  its 
execution.  To  undertake  saving  in  any  other  form  is 
simply  to  undertake  an  independent  decision  upon 
every  case  of  expenditure  that  arises.  This  rule  covers 
every  one,  and  will  accomplish  all  that  is  desired. 

We  have  prepared  the  following  tables  of  earnings 
and  savings,  which  give  all  per  diem  amounts  from  one 
cent  to  fifty  dollars,  from  one  year  to  fifty  years,  by  which 
any  one  can  determine  when  he  wishes  his  independence 
to  fall  in,  or  what  he  will  have  to  save  a  day,  to  gain  the 
amount  sought.  By  an  example  their  use  can  be  under- 
stood. They  are  for  accummulations  without  interest  and 
with  interest  at  5,  6,  7,  and  8  per  cent,  per  annum,  the 
respective  amounts  being  improved  each  six  months. 

Suppose  you  wish  to  find  how  much  you  would  have 
to  save  a  day  for  ten  years  to  accumulate  5,000.  Look 
at  the  table  of  ten  years,  and  run  down  either  of  the 
columns  without  interest  and  with  interest  at  5,  6,  7,  or  8 
per  cent.  You  find  that  #1,60  cents  by  adding  $3,130 
the  accumulation  of  $1,  and  $1,878  that  of  60  cents,  you 


And  how  to  Keep  it.  263 

have  $5,008  without  interest.  So  that  $1,60  cents  per 
day  will  accumulate  in  ten  years,  without  interest,  to  be 
$5,008,  and  with  interest  the  same  process  is  had  in 
each  of  the  respective  columns  of  5,6,  7,  or  8  per  cent. 

These  tables  are  interesting,  and  by  looking  at  them 
often  and  studying  them,  the  great  idea  of  gain  by  accu- 
mulation can  be  grounded  in  the  mind,  and  the  benefi- 
cial results  to  the  money-seeker  proved.  They  show, 
too,  how  much  per  diem  amounts  will  accumulate  in  any 
number  of  years. 


264 


How  to  make  Money  make  Money, 


Table 

Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars per  day  for  One  Year  of  313  working  days,  without 
interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent.,  improved 
each  six  months. 


Savings 

Without 

With  interest 

With  interest 

With  interest 

With  interest 

per  day. 

interest. 

ats 

at  6 

at  7 

at  8 

per  cent 

per  cent. 

per  cent. 

per  cent. 

I 

$3   13 

$3  17 

$3   18 

$3   18 

$3   19 

2 

6  26 

6  34 

6  35 

6  37 

6  39 

3 

9  39 

9  11 

9  53 

9  55 

9  58 

-4 

12  52 

12  68 

12  71 

12  74 

12  77 

5 

15  65 

15  85 

15  88 

15  92 

15  96 

6 

18  78 

19  01 

19  06 

19  11 

19  16 

7 

21  91 

22  18 

22  24 

22  29 

22  35 

8 

25  04 

25  35 

25  42 

25  48 

25  54 

9 

28  17 

28  52 

29  59 

28  66 

28  73 

10 

3i  3o 

31  69 

31  77 

31  85 

3i  93 

15 

46  95 

47  54 

47  65 

47  77 

47  89 

20 

62  60 

63  38 

63  54 

63  70 

63  85 

25 

78  25 

79  23 

79  42 

79  62 

79  82 

30 

93  9° 

95  o7 

95  3i 

95  54 

95  78 

40 

125  20 

126  76 

127  08 

127  39 

127  70 

So 

156  50 

158  46 

158  85 

159  24 

159  63 

60 

187  80 

190  15 

190  62 

191  09 

191  56 

70 

219  10 

221  84 

222  39 

222  93 

223  48 

80 

250  40 

253  53 

254  16 

254  78 

255  41 

90 

281  70 

285  22 

285  93 

286  63 

287  33 

$1  00 

313  00 

316  91 

317  69 

318  48 

319  26 

2  00 

626  00 

633  82 

635  39 

636  95 

638  52 

3  00 

939  °° 

95o  74 

953  08 

955  43 

957  78 

4  00 

1,252  00 

1,267  65 

1,270  78 

1,273  91 

1,277  04 

5  00 

1,565  00 

1,584  56 

1,588  47 

1,992  39 

1,596  30 

6  00 

1,878  00 

1,901  47 

1,906  17 

1,910  86 

1,915  56 

7  00 

2,191  00 

2,218  39 

2,223  86 

2,229  34 

2,234  82 

8  00 

2,504  00 

2,535  3o 

2,541  56 

2,547  82 

2,554  08 

9  00 

2,817  °° 

2,852  21 

2,859  26 

2,866  33 

2,873  34 

10  00 

3,130  00 

3,169  12 

3,176  15 

3,184  77 

3,192  60 

15  00 

4,695  00 

4,753  69 

4,765  42 

4,777  16 

4,788  90 

20  00 

6,260  00 

6,33%   25 

6,350  90 

6,369  55 

6,385  20 

25  00 

7,825  00 

7,922  81 

7,942  37 

7,961  94 

7,981  50 

30  00 

9,390  00 

9.507  37 

9,530  88 

9,554  32 

9,577  80 

35  00 

10,955  00 

11,091  84 

11,119  32 

11,146  71 

11,174  10 

40  00 

12,520  00 

12,676  50 

12,707  80 

12,739  10 

12,770  40 

45  00 

14,085  00 

14,261  06 

14,296  28 

H,33i  49 

14,366  70 

50  00 

15,650  00 

15,845  63 

15,884  75 

15,923  88 

15,963  00 

And  how  to  Keep  it. 


265 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars per  day  for  Five  Years  of  313  working  days,  without 
interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent,  improved 
each  six  months. 


Savings 
per  day. 

Without 
interest. 

With  interest 

at  5 

per  cent. 

With  interest 

at  6 

per  cent. 

With  interest 

at  7 

per  cent. 

With  interest 

at  8 

per  cent. 

I 

$15  65 

$17   53 

$17  94 

$18  36 

$18  79 

2 

31  30 

35  o7 

35  88 

36  72 

37   58 

3 

46  95 

52  60 

53   82 

55  08 

56  37 

4 

62  60 

70  13 

71  76 

73   44 

75   16 

5 

78  25 

87  67 

89  7o 

91  80 

93  95 

6 

93  9° 

105  20 

107  65 

no  16 

112  74 

7 

109  55 

122  73 

125  59 

128  52 

131  53 

8 

125  20 

140  27 

143  53 

146  88 

150  32 

9 

140  85 

157  80 

161  47 

165  24 

169  n 

10 

156  50 

175  33 

179  41 

183  60 

187  90 

15 

234  75 

263  00 

267  11 

275  39 

281  84 

20 

313  00 

350  00 

358  82 

367  19 

375  79 

25 

391  25 

438  33 

44S  52 

458  99 

469  74 

30 

469  50 

526  00 

538  23 

550  79 

563  69 

40 

626  00 

701  33 

717  64 

734  39 

75i  58 

50 

782  50 

876  66 

897  03 

917  98 

939  48 

60 

939  00 

1.052  00 

1,976  46 

1,101  58 

1,127  37 

70 

1,095  5° 

1,227  33 

1,255  87 

1,285  17 

i,3i5  27 

80 

1,202  00 

1,402  66 

i,435  28 

1,468  77 

1,503  16 

90 

1,408  50 

1,578  00 

1,614  69 

1,652  37 

1,691  06 

$1   00 

1.565  00 

1,753  33 

1,794  10 

1,835  96 

1,878  96 

2  00 

3,130  00 

3,506  66 

3,588  19 

3,671  93 

3,757  9i 

3  00 

4,695  00 

5,259  99 

,5,382' 29 

5,507  89 

5,636  87 

4  00 

4,695  00 

7,013  32 

7,176  39 

7,343  85 

7,515  82 

5  00 

7,825  00 

8,766  65 

8,970  49 

9,179  82 

9,394  78 

6  00 

9,390  00 

10,519  98 

10,764  58 

11,015  78 

11,273  73 

7  00 

10,955  00 

12,273  30 

12,558  68 

12,851  74 

13,132  69 

8  00 

12,520  00 

14,027  63 

H,352  78 

14,688  70 

15,031  65 

9  00 

14,085  00 

15,779  96 

16,146  87 

16,523  67 

16,910  60 

10  00 

15,650  00 

17,533  29 

17,940  97 

i8,359  63 

18,789  56 

15  00 

23,475  00 

26,299  94 

26,711  46 

27,539  45 

28,184  34 

20  00 

31,300  00 

35,066  58 

35,881  94 

36,719  26 

37,579  I2 

25  00 

39,125  00 

43,833  23 

44.852  43 

45,899  08 

46,973  89 

30  00 

46,950  00 

52,599  88 

53,822  91 

55,078  89 

56,368  67 

35  00 

54,775  00 

61,366  52 

62,793  40 

64,258  71 

65,763  45 

40  00 

62,600  00 

7o,i33  17 

71,763  88 

73,438  52 

75,158  23 

45  °° 

70,425  00 

78,899  82 

8o,734  37 

82,618  34 

84,533  01 

50  00 

78,250  00 

87,666  46 

89,704  86 

91,798  15 

93,947  79 

266 


How  to  make  Money  make  Money, 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars per  day  for  Ten  Years  of  313  working  days,  without 
interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent,  improved 
each  six  months. 


Savings 
per  day. 

Without 
interest. 

With  interest 

at  5 

per  cent. 

With  interest 

at  6 

per  cent. 

With  interest 

at  7 

per  cent. 

With  interest 

at  8 

per  cent. 

I 

$31  13 

$39  98 

$42  05 

$44  26 

$46  60 

2 

62  26 

79  95 

84  IO 

88  52 

93  21 

3 

93  39 

119  93 

126  16 

132  77 

139  81 

4 

124  52 

159  91 

l68  21 

177   03 

186  41 

5 

156  50 

199  89 

2IO  26 

222  29 

233  01 

6 

187  80 

239  86 

252  31 

265  56 

279  62 

7 

219  10 

279  84 

294  36 

309  80 

326  22 

8 

250  40 

319  82 

336    52 

354  06 

372  82 

9 

281  70 

369  80 

378  47 

398  22 

419  42 

10 

313  00 

399  77 

420  52 

442  58 

466  03 

15 

469  50 

599  66 

630  78 

666  87 

699  04 

20 

626  00 

799  95 

841  04 

885  15 

932  05 

25 

782  50 

999  43 

1,051  30 

1, in  44 

1,165  °7 

30 

939  °° 

1,199  32 

1,261  56 

1,327  73 

1,398  08 

40 

1,252  00 

1,599  10 

1,682  09 

1,770  31 

1,864  11 

50 

1,565  00 

1,998  87 

2,102  61 

2,212  89 

2,330  ;3 

60 

1,878  00 

2,398  64 

2,523  13 

2,655  46 

2,796  16 

70 

2,191  00 

2,798  42 

2,943  65 

3,098  04 

3,262  19 

80 

2,504  00 

3,198  19 

3,364  17 

3,540  62 

3,728  22 

90 

2,817  00 

3,599  97 

3,784  69 

3,982  19 

4,194  24 

$1  00 

3,130  00 

3,997  74 

4,205  21 

4,425  77 

4,660  27 

2  00 

6,260  00 

7,995  48 

8,410  43 

8,851  54 

9,320  54 

3  00 

9,390  00 

11,993  22 

12,615  64 

13^77  31 

13,980  81 

4  00 

12,520  00 

15,990  96 

16,820  85 

17,703  08 

18,641  08 

5  00 

15,650  00 

19,998  69 

21,026  07 

22.228  85 

23,301  35 

6  00 

18,750  00 

23,986  43 

25,251  28 

26,554  32 

27,961  62 

7  00 

21,910  00 

27,984  17 

29,436  50 

30,980  39 

32,621  89 

8  00 

25,040  00 

31,982  91 

33,642  71 

35,406  16 

37,282  14 

9  00 

28,170  00 

35,979  65 

37,846  92 

39,82i  93 

41,942  42 

10  00 

31,300  00 

39,977  39 

42,052  14 

44,257  7o 

46,602  69 

15  00 

46,950  00 

59,956  08 

63,078  20 

66,668  55 

69,904  04 

20  00 

62,600  00 

79,954  78 

84,104  27 

88,515  40 

93,205  39 

25  00 

78,250  00 

99,943  47 

105,030  00 

111,144  00 

116,507  00 

30  00 

93,900  00 

119,932  00 

126,156  00 

132,773  00 

139,808  DO 

35  00 

109,550  00 

139,920  00 

147,182  00 

154,902  00 

163,109  OO 

40  00 

125,200  00 

159,909  00 

168,209  00 

177,031  00 

186,411  OO 

45  00 

140,850  00 

179,898  00 

189,235  00 

199,120  00 

209,712  OO 

50  00 

156,500  00 

199,887  00 

210,261  00 

122,289  00 

233,013  00 

And  tiuw  to  Keep  it. 


267 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars per  day  for  Fifteen  Years  of  313  working  days,  with- 
out interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent, 
improved  each  six  months. 


Savings 
per  day. 

Without 
Interest. 

With  Interest 

at  5 

per  cent 

With  Interest 

at  6 

per  cent. 

With  Interest 

at  7 

per  cent. 

With  Interest 

at  8 

per  cent. 

I 

$47 

$69 

$74 

$81 

$88 

2 

94 

137 

149 

l62 

178 

3 

141 

206 

223 

242 

263 

4 

188 

275 

298 

323 

35i 

5 

235 

344 

372 

404 

439 

6 

282 

412 

447 

485 

527 

7 

329 

481 

521 

565 

614 

8 

376 

55o 

596 

646 

702 

9 

423 

618 

670 

727 

790 

10 

470 

687 

745 

808 

878 

15 

704 

1,031 

1,117 

1,212 

i,3i7 

20 

939 

i,374 

1,489 

I,6l6 

i,755 

25 

i,i74 

1,718 

1,861 

2,Ol8 

2,194 

30 

1,409 

2,061 

2,234 

2,424 

2,633 

40 

1,878 

2,748 

2,978 

3,232 

3,5n 

50 

2,348 

3,435 

3,727 

4,039 

4,389 

60 

2,817 

4,122 

4,467 

4,847 

5,266 

70 

3,227 

4,810 

5,212 

5,655 

6,144 

80 

3,756 

5,497 

5,956 

6,463 

7,022 

90 

4,226 

6,184 

6,701 

7,271 

7,900 

$1  00 

4,695 

6,871 

7,446 

8,079 

•  8,777 

2  00 

9,39o 

13,742 

14,891 

l6,l6o 

17,555 

3  °° 

14,085 

20,612 

22,337 

24,237 

26,332 

4  00 

18,785 

27,483 

29,782 

32,316 

35,I09 

5  00 

23,475 

34,354 

37,228 

40,395 

43,886 

6  00 

28,170 

41,225 

44,673 

48,474 

52,664 

7  00 

32,865 

48,095 

52,119 

56,550 

6i,44i 

8  00 

37,56o 

54,966 

59,564 

64,633 

70,218 

9  00 

42,255 

61,837 

67,060 

72,716 

78,996 

10  00 

46,950 

68,708 

74,456 

80,789 

S7,773 

15  00 

70,425 

103,162 

111,683 

I2I,l84 

131,659 

20  00 

93,900 

137.415 

148,911 

l6l,600 

175,546 

25  00 

H7,375 

171,769 

186,139 

201,974 

219,432 

30  00 

140,850 

206,123 

223,367 

242,368 

263,319 

35  00 

164,325 

240,477 

260,594 

282,748 

307,205 

40  00 

187,800 

274-830 

297,822 

323*158 

35i,o92 

45  00 

211,275 

309,185 

335,o5o 

363,553 

394,978 

50  00 

234,75o 

343,539 

372,278 

409,947 

438,865 

How  to  make  Money  make  Money, 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol 
lars  per  day  for  Twenty  Years  of  313  working  days,  with- 
out interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent.; 
improved  each  six  months. 


Savings 

Without 

With  Interest 

With  Interest 

With  Interest 

With  Interest 

per  day. 

Interest. 

at  5 

at  6 

at  7 

at  8 

per  cent. 

per  cent. 

per  cent. 

per  cent. 

I 

$63 

$105 

$118 

$132 

$149 

2 

126 

211 

236 

265 

297 

3 

189 

316 

354 

397 

446 

4 

252 

422 

472 

529 

595 

5 

313 

527 

59o 

662 

744 

6 

376 

633 

708 

794 

892 

7 

438 

738 

826 

926 

1,041 

8 

50I 

844 

944 

1,059 

1,190 

9 

563 

949 

1,062 

1,191 

i,338 

10 

626 

1,055 

1,180 

1,323 

1,487 

15 

939 

1,582 

1,770 

1,985 

2,231 

20 

1,252 

2,110 

2,360 

2,646 

2,974 

25 

1,565 

2,637 

2,950 

3,3o8 

3,7i8 

30 

1,878 

3,165 

3,54o 

3,97o 

4,461 

40 

2,504 

4,219 

4,720 

5,293 

5,949 

1° 

3,130 

5,274 

5,9oo 

6,616 

7,436 

60 

3,756 

6,329 

7,081 

7,939 

8,923 

70 

4,382 

7,384 

8,260 

9,262 

10,410 

80 

5,008 

8,439 

9,440 

10,586 

11,897 

90 

5,634  ' 

9,494 

10,620 

11,909 

13,384 

$1  00 

6,260 

10,969 

11,800 

13,232 

14,872 

2  00 

12,520 

21,097 

23,601 

26,464 

29,744 

3  00 

25,040 

31,646 

35,4oi 

39,696 

44,614 

4  00 

25,040 

42,194 

47,201 

52,928 

59,886 

5  00 

31,300 

52,743 

59,001 

66,161 

74,357 

6  00 

37,56o 

63,291 

70,802 

97,393 

89,229 

7  00 

43,820 

73,839 

82,602 

92,625 

104,100 

8  00 

50,080 

84,388 

94,402 

105,857 

118.972 

9  00 

56,340 

94,936 

106,203 

119,089 

133,843 

10  00 

62,600 

105,485 

118,003 

132,321 

148,715 

15  00 

93,900 

158,227 

177,004 

197,482 

223,072 

20  00 

125,250 

210,970 

236,006 

264,642 

297,440 

25  00 

156,500 

263,712 

295,007 

330,803 

371,787 

30  00 

187,800 

3i6,455 

354,049 

396,964 

446,141 

32  00 

219,100 

369,197 

314,010 

463,124 

520,502 

40  00 

250,400 

421,940 

472,012 

529,285 

594,860 

45  00 

281,700 

474,682 

53i,oi3 

595,445 

669,217 

50  00 

313,000 

527,425 

590,015 

661,606 

743,575 

And  how  to  Keep  it. 


269 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol* 
lars  per  day  for  Twenty  five  Years  of  313  working  days, 
without  interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent, 
improved  each  six  7-nonths. 


Savings 
per  day. 

Without 
Interest. 

With  Interest 

at  5 

per  cent. 

With  Interest 

at  6 

per  cent. 

With  Interest 

at  7 

per  cent. 

With  Interest 

at  8 

per  cent. 

I 

$78 

$153 

$m 

$205 

$239 

2 

I56 

305 

353 

4IO' 

478 

3 

234 

458 

530 

615 

717 

4 

312 

6lO 

706 

820 

956 

5 

391 

763 

883 

1,025 

1,195 

6 

469 

915 

1,059 

1,230 

1,434 

7 

548 

1,068 

1,256 

i,435 

1,672 

8 

626 

1,220 

1,412 

1,640 

1,911 

9 

704 

i,373 

1,589 

1,845 

2,H5 

10 

782 

1,526 

1,765 

2,050 

2,389 

15 

1,174 

2,288 

2,648 

3,o75 

3,584 

20 

1,565 

3,051 

3,531 

4,100 

4,776 

25 

1,956 

3,8i4 

4,413 

5,125 

5,973 

30 

2,348 

4,577 

5,296 

6,150 

7,168 

40 

3,130 

6,103 

7,061 

8,200 

9,557 

5o 

3,9U 

7,628 

8,826 

10,251 

11,946 

60 

4,695 

9,i54 

10,592 

12,301 

H,335 

7o 

5,477 

10,679 

12,257 

H,35o 

16,725 

80 

6,260 

11,205 

14,122 

16,401 

19,114 

90 

7,043 

I3,73i 

15,887 

18,451 

21,446 

£1  00 

7,825 

15,256 

17,653 

20,501 

23,892 

2  00 

15,650 

3o,5i3 

35,305 

41,002 

47,785 

3  00 

23,475 

45,769 

52,958 

61,504 

7i,6/7 

4  00 

31,400 

61,025 

70,611 

82,005 

95,57o 

5  00 

39,125 

76,282 

88,264 

102,506 

119,462 

6  00 

46,950 

9i,538 

105,916 

123,007 

H3,354 

7  00 

54,775 

106,794 

125,569 

H3,5oi 

167,247 

8  00 

62,600 

122,050 

141,221 

164,009 

I9i,i39 

9  00 

70,425 

137,307 

158,874 

184,511 

214,462 

10  00 

78,250 

152,563 

176,527 

205,012 

238,924 

15  00 

H7,375 

228,845 

264,791 

307,518 

358,386 

20  00 

156,500 

305,126 

353.054 

410,023 

477,848 

25  00 

195,625 

381,408 

441,318 

512,549 

597,3JO 

30  00 

234,75o 

457,689 

529,581 

615,035 

716,772 

35  00 

273,875 

533,976 

612,845 

717,506 

836,734 

\o  00 

313,000 

610,252 

706,108 

820,047 

945,696 

*5  °o 

352,125 

686,534 

794,372 

922,553 

1,072,308 

50  00 

391,250 

762,815 

882,635 

1,025,059 

1,194,620 

270 


How  to  make  Money  make  Money, 


Table 

Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars per  day  for  Thirty  Years  of  313  working  days,  without 
interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent,  improved 
each  six  months. 


Savings 
per  day. 

Without 
Interest. 

With  Interest 

at  5 

per  cent. 

With  Interest 

at  6 

per  cent. 

With  Interest 

at  7 

per  cent. 

With  Interest 

at  8 

per  cent. 

I 

$94 

$213 

$255 

$308 

$372 

2 

288 

425 

5IO 

615 

745 

3 

282 

638 

756 

923 

1,117 

4 

376 

85I 

1,021 

1,230 

1,490 

5 

470 

1,064 

1,276 

1,538 

1,862 

6 

563 

1,277 

1,531 

1,845 

2,235 

7 

657 

1,490 

1,786 

2,153 

2,606 

8 

75i 

1,703 

2,041 

2,460 

2,980 

9 

845 

1,915 

2,297 

2,768 

3,352 

10 

939 

2,128 

2,552 

2,956 

3,725 

15 

1,409 

3,192 

3,828 

4,613 

5,587 

20 

1,878 

4,257 

5,104 

6,151 

7,449 

25 

2,348 

5,321 

6,329 

7,689 

9,3H 

30 

2,817 

6,385 

7,555 

9,226 

n,i74 

40 

3,756 

8,513 

10,207 

12,302 

14,898 

50 

4.695 

10,641 

12,759 

15-377 

18,628 

60 

5,'634 

12,770 

i5,3n 

18,453 

22,347 

70 

6,573 

14,898 

17,863 

21,528 

26,062 

80 

7,5i2 

17,026 

20,414 

24,604 

29,796 

90 

8,451 

19,154 

22,966 

27,679 

33,52i 

$1   00 

9,390 

21,283 

25,518 

3o,755 

37,246 

2  00 

18,780 

42,565 

51,036 

61,509 

74,49i 

3  00 

28,170 

63,848 

75,554 

92,264 

in,737 

4  00 

37,56o 

85,131 

102,071 

123,018 

148,982 

5  00 

46,950 

106,413 

127,589 

153,773 

186,228 

6  00 

56,340 

127,696 

153,107 

184,528 

223,473 

7  00 

65,730 

148,979 

178,625 

215,284 

260,619 

8  00 

75,120 

I70,26l 

204,142 

246,036 

277,764 

9  00 

84,510 

191,544 

229,661 

276,791 

335,2io 

10  00 

93,9oo 

212,827 

255,179 

307,546 

372,455 

15  00 

140,850 

319,240 

382,767 

461,319 

558,683 

20  00 

187,800 

425,654 

5io,357 

615,092 

744,911 

25  00 

234,750 

532,067 

639i947 

768,865 

93M38 

30  00 

281,700 

638.481 

755,536 

922,638 

1,177,366 

35  00 

322,650 

744,894 

893,125 

1,076,420 

1,303,094 

40  00 

375,6oo 

851,307 

1,020,715 

1,230,184 

1,489,822 

45  °° 

422,550 

957,721 

1,148,304 

i,383<957 

2,676,04c; 

50  00 

469,500 

1,030,546 

1,231,134 

1,478,183 

1,783,127 

And  how  to  Keep  it. 


271 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars^- day  for  Forty  Years  of  313  working  days,  without 
interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent.,  improved 
each  six  months. 


Savings 
per  day. 

Without 

With  Interest 

With  Interest 

With  Interest 

With  Interest 

Interest 

at  5 
per  cent. 

at  6 
per  cent. 

at  7 
per  cent. 

at  8 
per  cent. 

I 

$125 

$389 

$503 

$656 

$863 

2 

250 

777 

1,006 

1,312 

1,728 

3 

375 

1,166 

1,509 

1,969 

2,588 

4 

500 

i,555 

2,012 

2,625 

3,451 

5 

704 

1,944 

2,515 

3,28l 

4,313 

6 

75i 

2,333 

3,018 

3,937 

5,176 

7 

876 

2,721 

3,521 

4,594 

6,039 

8 

1,002 

3,no 

4,023 

5,250 

6,902 

9 

1,127 

3,498 

4,526 

5,9o6 

7,764 

10 

1,409 

3,887 

5,029 

6,562 

8,627 

15 

1,878 

5,831 

7,544 

9,843 

12,940 

20 

2,504 

7,774 

10,059 

13,124 

17,254 

25 

3,i3o 

9,7i8 

12,573 

16,405 

21,567 

30 

3,756 

11,662 

15,088 

19,686 

25,881 

40 

5,008 

15-549 

20,117 

26,248 

34,508 

5o 

6,260 

19,436 

25,H7 

32,810 

43,135 

60 

7,5i2 

23,323 

30,176 

39,373 

51,762 

70 

8,764 

27,210 

35,205 

45,945 

60,389 

80 

10,016 

31,098 

40,235 

52,497 

69,016 

90 

11,268 

34,985 

45,264 

59,059 

77,643 

$1  00 

12,520 

38,872 

50,293 

65,621 

86,270 

2  00 

25,040 

77,744 

100,587 

131,242 

I95,06l 

3  00 

37,56o 

.116,616 

150,880 

196,863 

258,809 

-4  00 

50,080 

155,488 

201,173 

262,484 

345,079 

5  00 

62,600 

194,359 

251,467 

328,105 

431,249 

6  00 

75,120 

233,231 

301,760 

393,726 

517,619 

7  00 

87.640 

272,103 

352,053 

459,446 

603,889 

8  00 

100  160 

3io,975 

402,646 

524,967 

690, 1 59 

9  00 

112,680 

349,847 

452,640 

590,588 

776,428 

10  00 

125,200 

388,719 

5°2,933 

656,209 

862,698 

15  00 

487,800 

583,078 

754,399 

984,3H 

1,294,047 

20  00 

250,400 

777,438 

1,005,866 

1,312,418 

1,725,397 

25  00 

313.000 

971,797 

1,257,333 

1,640,523 

2,156,746 

30  00 

375,6oo 

1,116,157 

1,508,799 

1,968,628 

2,588,095 

35  00 

138,200 

1,360,516 

1,760,266 

2,297,232 

3,019,444 

40  00 

500,800 

1,554,876 

2,011,732 

2,624,837 

3,450,793 

45  00 

563,400 

1,749,235 

2,263,199 

2,452,942 

3,882,142 

50  00 

626,000 

1,943,595 

2,514,666 

3,281,046 

4,313,49! 

12 


272 


How  to  make  Money  make  Money, 


Table 


Showing  the  net  amount  of  earnings  of  One  Cent  to  Fifty  Dol- 
lars per  day  for  Fifty  Years  of  313  working  days,  without 
interest,  and  with  interest  at  5,  6,  7,  and  8  per  cent.,  improved 
each  six  months. 


Savings 
per  day. 

Without 
Interest 

With  Interest 

at  5 

per  cent. 

With  Interest 

at  6 

per  cent 

With  Interest 

at  7 

per  cent. 

With  Interest 

at  8 

per  cent. 

I 

$157 

$677 

$950 

$1,350 

$i,937 

2 

3H 

i,354 

1,901 

2,700 

3,874 

3 

471 

2,031 

2,851 

4,050 

5,811 

4 

628 

2,708 

3,802 

5400 

7,748 

5 

783 

3,385 

4,752 

6,741 

9,684 

6 

939 

4,062 

5,702 

8,IOO 

11,621 

7 

1,095 

4,739 

6,653 

9,450 

13,558 

8 

1,252 

5,416 

7,603 

10,800 

15,495 

9 

1,408 

6,092 

8,554 

12,150 

17,432 

10 

1,565 

6,769 

9,504 

13,500 

19,369 

15 

2,348 

10,154 

14,256 

20^250 

29,053 

20 

3,i3o 

15,539 

19,008 

27,000 

3^737 

25 

3,913 

16,923 

23,760 

33,749 

48,422 

30 

4,695 

20,308 

28,512 

44,993 

58,106 

40 

6,260 

27,078 

38,016 

53,999 

77,476 

50 

7,825 

33,847 

47,52o 

67,499 

96,843 

60 

9,39° 

40,616 

57,024 

89,999 

116,212 

70 

io,955 

47,386 

66,528 

94,988 

i35,58i 

80 

12,520 

54,155 

76,032 

197,998 

154,949 

90 

14058 

60,424 

85,537 

121,498 

I74,3i8 

$1  00 

15,650 

67,694 

95,041 

134,998 

193,687 

2  00 

3T,3oo 

135,388 

190,081 

269,995 

387,373 

3  °° 

46,950 

203,082 

285,122 

404,993 

581,060 

4  00 

62,600 

27o,775 

380,162 

539,990 

774,756 

5  00 

78,250 

388,469 

475,203 

674,988 

968,433 

6  00 

93,900 

406,-163 

570,984 

809,985 

1,162,119 

7  00 

109,550 

473,857 

665,284 

944,983 

1,355,806 

8  00 

125,200 

54i,55i 

760,325 

1,079,980 

1,549,493 

9  00 

140,850 

609,245 

855,365 

1,214978 

i,743J79 

10  00 

156,500 

676,939 

950,406 

1,349,976 

1,936,866 

15  00 

234,75o 

1,015,407 

1,425,606 

2,024,963 

2,905,299 

20  00 

313,000 

1,353,877 

1,900,812 

2,699,951 

3,873,732 

25  00 

391,250 

1,692,347 

2,376,015 

3,374,939 

4,842,165 

30  00 

469,500 

2,030,816 

2,  51,218 

4,o49,927 

5,810,598 

35  00 

447,750 

2,369,285 

3,326,412 

4,724,924 

6,779,o3i 

40  00 

626,000 

2,707,755 

3,801,624 

5,399,902 

7,747,564 

45  °° 

704,250 

3,046,224 

4,276,827 

6,074,890 

8,715,897 

50  00 

782,500 

3,334,693 

4,752,030 

6,749,878 

9,684,330 

And  how  to  Keep  it.  273 


CHAPTER  XXII. 


BANKING   AND    INSURANCE. 


Banks  of  discount. — Making  money  with  money. — Distin6l  trade. — 
Banking  successful. —  Why. —  Compared  with  traders. — Ma- 
chinery of  money-making. — Mint. — Comparison. — Must  know 
how. —  Process  of  banking. — Note  done. —  Lesson. — Trained 
business  men. —  Dividends. — General  principles. — Popularity 
of  officers. — Indiscreet  Teller. — Money  lost. — Treatment  of 
customers. — Savings  banks. — How  organized. — Charitable  and 
useful  device.— Mode  of  doing  business.-- Valuable  to  depositors. 
Influence  on  people. —  Makes  respectability. — New  world. — 
Gains  suitors. — Compound  interest  tables. — Uses. — Examples. 
Insurance. — Different  kinds.— Money-making.— Like  banking.— 
Cannot  afford  to  lose. — Winning  on  marine. — Property  insured. 
Look  out. — See  to  your  agreement.— Read  it  over. — Make  in- 
quiries.—  Down  to  the  ground. —  Save  on  a  loss. —  Money 
lost. — Look  to  the  obligation. — Study  your  men. — Friends. — 
Chaffer  on  paying. — General  Principles. — Sound  judgment. — 
Honest  intent  pays  well. 


Banking  is  of  three  kinds — the  banks  of  discount  and 
deposit,  Savings  Banks,  and  individual  or  private  Banks. 
All  of  them  have  but  one  object,  and  that  is  to  make 
money  with  money.  This  is  an  all-important  principle  for 
the  money-maker ;  and  to  know  how  this  is  done  accom- 
plishes a  great  object.  It  is  not  to  be  presumed,  here, 
to  give  such  institutions  or  individuals  any  information 
how  this  is  to  be  done  ;  for  their  success,  generally,  is  a 
proof  that  they  understand  that.  Further  than  that,  it 
is  an  occupation,  and  it  may  be  called  a  trade  within 
itself,  requiring  long  experience,  extensive  knowledge  of 


274  How  to  make  Money  make  Money, 

values,  good  judgment,  great  firmness  ;  and,  in  fact,  every 
business  qualification  in  its  highest  perfection.  By  refer- 
ring to  banking  as  one  of  the  most  extensive  means  of 
making  money  with  money,  is  simply  to  show  the  money- 
maker, after  he  has  got  his  dollar,  how  others  manage 
other  dollars  to  advantage,  so  that  he  may  know  the  dan- 
ger of  managing  his  with  his  trifling  information — a  sub- 
ject: that  requires  such  superior  knowledge  and  acquire- 
ments to  do  well. 

There  are  no  statistics  at  hand  that  will  directly  com- 
pare any  other  trade  or  business  with  banking,  in  the 
way  of  success.  It  is  presumed,  however,  that  it  may 
be  safely  laid  down  that  there  are  not  five  per  cent,  of 
failures  in  regular  banking  business,  when  there  is  ninety 
or  ninety-five  per  cent,  of  failures  in  commercial  business. 
Both  deal  in  the  same  things,  the  one  in  the  articles  them- 
selves, the  other  by  their  representation  in  paper.  Now 
this  fact  is  sufficient  to  awaken  the  mind  of  the  merchant 
or  trader  to  an  investigation  of  the  manner  in  which  Banks 
handle  their  values  ;  what  they  do,  how  they  do  it,  when 
they  do  it,  and  how  they  succeed,  while  I  lose  and  fail. 
And  now,  Mr.  Trader,  or  Merchant,  if  you  are  sufficiently 
awake  to  this  fact  to  make  the  investigation,  and  profit 
by  it,  you  have  done  the  best  day's  work  you  ever  did  in 
your  life.  But  the  chances  are,  you  will  say,  "  Poh  !  a 
Bank  is  one  thing,  and  a  mercantile  business  is  another." 
And  let  me  say,  you  say  the  truth,  as  both  are  conducted 
at  the  present  day.  The  result,  however,  is  that  one  is  a 
success,  while  the  other  is  a  failure. 

It  will  be  interesting  to  the  trader  to  look  at  the  sta- 
tistics on  page  88,  and  read,  that  a  bank  in  Boston  had 
occasion  to  look  back  to  their  accounts,  and  the  result 
was,   that  "  of  the   one  thousand  accounts   which    were 


And  how  to  Keep  it,  275 

opened  with  them  in  starting,  only  six  remained.  They 
had,  in  forty  years,  either  failed  or  died  destitute  of  pro- 
perty!' The  bank  stood,  while  nine  hundred  and  ninety- 
four  traders,  out  of  the  thousand,  had  gone  down. 

But,  it  is  not  alone  the  trader  who  is  interested  in  this 
question  ;  it  is  every  one  who  has  made  his  dollar,  or 
who  is  in  the  way  of  making  it,  who  is  interested  in 
knowing  what  machinery  is  used  in  banking,  whereby 
money  is  made  out  of  money  ;  and  further  than  that,  to 
know  that  it  requires  machinery  of  a  peculiarly  delicate 
nature,  well-managed,  to  accomplish  the  object — at  least 
in  this  special  way  of  making  money  with  money.  Half 
the  people  who  have  labored  for  their  dollar  do  not  know 
that  such  machinery  can  have  the  least  bearing  upon 
what  they  have  made ;  that  to  put  their  dollar  through 
this  machinery,  or  a  process  like  it,  that  it  will  come  out 
one  increased  in  value.  The  trouble  being  that  they 
generally  put  it  into  a  machine  where  it  never  comes  out 
at  all,  and  hence  they  never  see  the  dollar,  or  its  increase. 

Can  the  machinery  of  a  mint  be  made  by  a  novice  ?  or 
can  it  be  worked  by  one  entirely  ignorant  of  its  con- 
struction ?  Just  as  well  might  the  man  undertake  to 
increase  his  dollar  without  the  necessary  knowledge  of 
the  required,  machinery,  as  to  make  a  metallic  dollar 
without  knowing  how  it  should  be  made,  and  a  knowledge 
of  how  to  make  it.  This  trade  of  increasing  the  dollar 
by  making  the  dollar  work  is  not  caught  up  by  inspira- 
tion, or  acquired  in  an  instant ;  and  he  who  has  a  dollar 
to  set  at  work,  must  know  well  how  it  is  to  be  done,  or 
he  must  find  it  in  a  machine  that  is  known  to  do  this 
kind  of  work  well,  or  loss  of  it  is  the  inevitable  conse- 
quence. Hence  the  long  list  of  failures  and  wide-spread 
poverty  among  our  most  worthy  and  energetic  men,  not 


276  How  to  make  Money  make  Money, 

to  accomplish,  to  earn,  or  even  to  amass,  but  to  save, 
because  their  dollar  goes  into  the  wrong-machine. 

The  process  of  banking  is  the  machinery  required  to 
make  money  with  money.  Then  what  is  this  process  ? 
In  the  Banks  of  discount  and  deposit,  a  number  of  indi- 
viduals generally  put  in  a  certain  amount  of  money,  and 
that  is  represented  by  stock.  The  stockholders  assem- 
ble and  elect  a  number  of  directors,  and  they  elect;  a 
superintendent,  generally  called  a  President,  and  a  Cash- 
ier. People  deposit  their  money  for  safe  keeping,  and  for 
convenience,  and  the  original  money  put  in  by  the  stock- 
holders, with  the  deposits,  make  a  capital  to  purchase 
moneyed  securities  with — generally  notes  of  hand,  which 
represent  property  of  some  kind.  The  bank  is  then 
ready  to  do  business,  as  it  is  called  ;  that  is,  to  put  out 
their  money  on  short  dates  for  an  increase.  Up  to  this 
point,  the  whole  matter  is  very  simple,  and  any  one  could 
do  it.  But  now  comes  the  tug  of  war — whether  it  shall 
be  success  or  failure,  even  in  this  business. 

The  merchant  comes  in  with  a  note  taken  for  goods 
sold,  and  says  to  the  Cashier  ;  "  I  wish  you  would  give 
me  the  money  on  this."  The  answer  is  :  "I  will  hand  it 
to  the  President,  and  give  you  an  answer."  The  Presi- 
dent lays  the  paper  before  the  Board  of  Directors,  and  if 
the  paper  is  strongly  endorsed,  or  has  enough  collateral 
to  make  the  loan  petfectly  safe,  the  note  is  "  done  "  as  it  is 
called,  and  the  merchant  gets  the  money  on  it.  Now, 
Mr.  Merchant,  or  Mr.  Trader,  or  Mr.  anybody  else  who 
has  a  dollar  to  set  at  work,  do  you  see  anything  in  this 
that  attracts  your  attention  ?  When  you  take  a  note,  or 
part  with  property  or  money,  do  you  do  anything  like 
this  ?  Do  you  submit  your  transactions  for  approval  to 
two  sharp,  experienced  business  men,  who,  not  relying 


And  hozv  to  Keep  it.  277 

upon  their  own  judgment,  summon  to  their  aid  ten  or 
twelve  other  first-class  business  men,  to  decide  upon  the 
security  offered  ?  Remember  that  in  the  first  place,  they 
require  at  least  two  good  strong  names  to  start  with,  or 
collateral  security,  and  then  that  the  time  of  payment  is 
very  short — from  thirty  to  ninety  days. 

Sometimes,  even  with  these  precautions  a  bank  loses, 
but  not  very  often.  By  having  two  names  and  the  time 
of  payment  short,  one  or  the  other  will  as  a  rule  prove 
good.  There  is  no  business  transaction  which  has  not 
some  risk,  the  only  main  question  being  to  reduce  that 
risk  as  low  as  possible  by  every  conceivable  precaution. 
In  this  transaction  of  taking  a  note,  possibly  of  $500, 
twelve  to  fourteen  highly  and  long  trained  business  men 
consult  as  to  the  value  of  the  security  to  be  taken,  and 
every  one  interested  in  a  money  point  of  view  in  the 
result.  An  individual,  therefore,  who  has  a  security  to 
take  can  consult  no  one  else  who  has  a  like  interest  with 
him.  Such  investments,  are  generally  made  by  referen- 
ces to  individuals  who  have  no  interest  with  the  one  who 
parts  with  his  property,  but  whose  interest,  as  a  general 
rule,  is  to  have  you  part  with  your  property,  that  they 
may  get  pay  for  the  property  they  have  parted  with. 

Do  you  think  a  Bank  would  part  with  their  money  on 
such  terms,  or  on  such  representations  ?  If  they  did 
every  one  knows  what  would  be  the  result.  Do  you 
wonder  then,  reader,  that  traders  fail  on  such  a  system 
of  credits,  or  that  Banks  succeed  by  such  care,  caution, 
and  scrutinizing  discrimination  ?  The  Banks  declare  and 
divide  their  earnings  to  the  stockholders,  who  make  new 
investments  in  like  manner,  while  the  trader  makes  no 
dividends,  puts  nothing  away  to  the  good,  but  keeps  all 
his  eggs  in  one  basket  subject  to  the  vicissitudes  of 


278  How  to  make  Money  make  Money, 

trade.  Does  the  ordinary  dealer  see  nothing  in  the 
adverse  principles  which  will  open  his  eyes  to  a  system 
of  business  which  all  experience  has  shown  but  leads  to 
disaster  ? 

Banks  of  discount  and  deposit  are  useful,  as  a  means  of 
making  money  with  money,  to  those  who  have  compara- 
tively large  sums  to  set  at  work  in  this  way.  But  there 
is  a  class  of  Banks  called  Savings  Banks,  where  any  one 
can  in  like  manner  set  at  work  any  sum  of  money,  from 
one  cent  upward.  But  the  amount  of  profit  derived  is 
not  so  great,  generally,  as  in  the  Banks  of  discount  and 
deposit.  The  Savings  Banks  will  be  treated  separately 
hereafter,  as  being  the  most  available  and  the  best  means 
for  those  unacquainted  with  business  to  set  their  small 
means  to  work  with  safety. 

Although  Banks  present  the  nearest  approach  to 
perfection  in  the  interchange  of  values  represented  by 
paper,  there  are  certain  general  principles  which  will 
increase  these  earnings.  These  may  be  briefly  stated 
to  be — 

First.  The  business  qualifications  of  its  officers. 

Second.  The  judicious  selections  of  its  credit. 

Third.  The  current  expenses. 

Fourth.  General  reputation. 

The  personal  popularity  of  the  officers  of  a  Bank,  and 
the  manner  in  which  customers  or  depositors  are  treated, 
either  loses  or  wins  money  for  the  concern  ;  the  same 
general  rules  of  polite  intercourse  holding  in  those  cases 
as  in  transactions  between  merchants,  or  merchants  and 
consumers.  No  shrewd  business  man  will  ever  neglect 
this  principle,  whether  he  is  in  a  Bank  or  in  any  other 
business  where  his  profits  depend  upon  people  who  have 
a  choice,  and  can  give  their  money  to  one  or  to  another. 


And  hoiv  to  Keep  it.  279 

If  a  dealer  goes  into  a  Bank  to  get  his  own  money, 
and  an  indiscreet  teller  makes  him  wait  whhe  he  has  an 
agreeable  chat  with  his  fellow-clerk,  or  to  add  up  a 
column  of  figures  as  long  as  a  man's  arm,  which  he 
could  just  as  well  postpone,  he  is  unfit  for  his  place,  and 
is  a  damage  to  the  Bank,  and  is  money  lost  to  it.  For 
say  what  you  will,  the  dealer  feels  uncomfortable ;  and, 
instead  of  using  his  influence  to  aid  that  institution,  he 
will  hold  back,  if  he  does  not  damage  it  in  some  way. 
Instead  of  having  an  active  friend,  the  Bank  will  have  a 
quasi  one,  if  not  an  enemy ;  and  there  is  no  telling 
when  his  influence,  by  a  word,  may  strike  to  its  damage 
or  loss  of  money.  Any  other  like  neglect  or  careless- 
ness on  the  part  of  a  Bank  Officer  will  tend  to  the  same 
result. 

To  be  polite,  attentive,  pleasant,  and  agreeable  to  all, 
while  .business  is  done  on  business  principles,  will  bring 
dollars  into  the  deposit-line,  and  keep  them  there. 
They  will  make  friends  whose  influence  will  be  exerted 
towards  bringing  new  business  and  opening  new  avenues 
of  profit.  They  will  light  up  an  interest  in  the  welfare 
and  prosperity  of  the  institution  that  will  stand  sentinel 
over  its  interests,  and  sound  alarms  in  case  of  danger  of 
loss.  They  will  infuse  into  its  whole  business  a  thrift 
and  general  reputation,  which  will  roll  heavily  in  on  the 
deposit-line,  and  roll  out  heavily  on  the  dividend.  In 
case  of  difficulty  all  will  pay  such  an  institution  who  can. 

SAVINGS   BANKS. 

These  are  institutions  organized  and  conducted  by 
men  of  knowledge  and  skill  in  financial  matters,  for  the 
sole  benefit  of  persons  who  wish  to  save  and  improve 

12* 


2 So  How  to  make  Money  make  Money, 

small  sums  of  money,  who  have  no  knowledge  where  or 
how  to  place  them  to  bring  an  interest,  and  at  the  same 
time  be  subject  to  their  call.  The  device  is  eminently 
useful  and  truly  charitable.  The  institution  requires  a 
good  building  to  do  business  in,  and  officers  to  transact  it. 
They  take  the  deposits  of  money  and  invest  in  large 
sums  at  a  higher  rate  of  interest  than  they  pay  to  the 
depositors,  the  difference  going  to  pay  current  expenses. 
The  interest  received  is  generally  seven  per  cent.,  from 
that  to  six  per  cent.,  and  the  interest  paid  is  from  five  to 
six  per  cent. 

The  Bank  holds  itself  ready  at  all  times  to  meet  any 
obligation  on  demand  to  the  depositor.  The  advantages 
resulting  to  the  depositor  is  apparent,  since  he  cannot 
invest  small  sums  safely  in  any  other  way.  For  the 
depositor  generally  knows  nothing  of  business  financier- 
ing, and  it  would  be  costly  to  get  security  by  any  other 
means.  Then  other  securities  are  not  always  convertible 
into  cash  without  some  loss. 

Too  much  cannot  be  said  in  favor  of  Savings  Institu- 
tions for  the  protection  of  earnings  and  as  incentives  to 
economy.  A  sure  and  certain  means  by  which  in  a  few 
years,  as  has  been  seen,  an  independence  can  be  ob- 
tained, and  when  obtained  the  money  is  within  reach. 

The  money  that  the  mechanic,  day-laborer,  house  ser- 
vant, or  male  or  female  operative  spends  in  trifles  which 
neither  add  to  their  comfort  or  their  happiness  is  a  power- 
ful stream  of  wealth,  which,  if  poured  into  a  Savings  Insti- 
tution, soon  becomes  a  large  amount  of  money.  The  first 
dollar  thus  saved  and  anchored  is  the  incentive  to  fur- 
ther additions  and  the  taste  for  economy,  and  a  desire  to 
add  will  increase  with  each  deposit. 

Such  an  individual  makes  a  conservative  member  of 


And  how  to  Keep  it.  281 

society,  and  a  good  and  prosperous  citizen.  If  a  man  or 
woman  has  made  the  first  deposit  in  a  bank  for  savings, 
that  moment  their  services  are  more  valuable,  and  higher 
wages  can  be  obtained  from  their  employers.  It  is  a 
guarantee — an  indorsement  that  their  course  of  life  is 
governed  by  saving  principles,  and  that  they  will  not 
destroy  or  waste  the  property  of  their  employer.  No 
one,  then,  should  fail  to  make  their  first  deposit,  and  no 
one  should  fail  to  drill  themselves  to  strict  principles  of 
economy.  By  economy  is  meant  the  leaving  off  of  such 
expenses  as  are  not  necessary  either  for  comfort  or  for 
respectability.  It  should  also  be  remembered  that  such 
a  course  of  life  commands  respect,  and  elevates  the  indi- 
vidual. Any  one  feels  more  independent,  and  carries 
the  evidence  of  it  in  his  whole  demeanor,  when  free  of 
debt,  and  has  money  at  interest.  If  this  should  be  dis- 
puted by  any  one,  let  them  try  it ;  and  they  will  find,  from 
that  moment,  that  they  live  in  a  new  world. 

A  person,  no  matter  what  his  walk  in  life,  is  more 
looked  up  to  by  his  peers  if  he  is  known  to  be  free  of 
embarrassments,  and  has  money  at  his  command.  The 
principle  extends  to  the  serving-girl,  to  the  housemaid, 
and  to  all  classes  of  persons.  Let  it  be  known  that  an 
industrious  young  woman  has  some  money  in  a  Bank,  and 
has  her  book  as  the  evidence,  though  the  real  contents 
be  forever  unknown,  the  fact  gives  her  consequence  and 
suitors  too.  No  surer  way  for  such  a  one  to  get  a  hus- 
band, and  a  good  one,  than  to  be  in  the  possession  of 
money  of  her  own  earnings  in  a  Bank. 

The  compound  interest  tables  are  given,  that  any  one 
can  determine  the  amount  of  earning  of  any  sum  from 
one  to  one  hundred  years.  The  earnings  are  given 
for  one  dollar ;  and  if  it  be  desirable  to  find  the  earnings 


282 


How  to  make  Money  make  Money, 


Table. — Compound  Interest. 

Showing  the  Amount  of  $i  improved  at  Compound  Interest  for  any 
number  of  years  not  exceeding  ioo. 


i 

8 

c 

0 

8 

a 

B 

0 

fl 

fj 

8 

a 

i 

a 

fl 

i 

Si 

1 

8 

ft 

0 

ft 

0 

it 

E 

ft 

0 
0 

8 

B 
0 

■ 

•< 

8 

0 

0 

1> 

8 

8 

M 

> 

a 

£ 

a 

$ 

ft 

£ 

ft 

* 

ft 

ft 

ft 

ft 

M 

N 

m 

•»r 

* 

10 

vO 

■* 

00 

, 

$1  01 

$1  02 

$1  02 

$1  03 

$1  03 

$1  04 

$1  04 

$1  05 

$1   05 

$1  06 

$107 

*io8 

2 

1  02 

I  03 

I  04 

1  05 

1  06 

1  07 

1  08 

1  09 

1  10 

I  12 

1  14 

1  17 

3 

1  03 

I  05 

I  06 

1  08 

1  09 

1  11 

1  12 

1  14 

1  16 

I  19 

1  23 

1  26 

4 

1  04 

I  06 

I  OS 

1  10 

I  13 

1  15 

1  17 

1  19 

1  22 

I  26 

1  31 

1  36 

5 

1  05 

I  08 

I  IO 

1  13 

I  16 

1  19 

1  22 

1  25 

1  28 

1  34 

1  40 

1  47 

6 

1  06 

I  09 

I  13 

1  i5 

1  19 

I  23 

1  27 

I  30 

1  34 

1  42 

1  50 

1  59 

7 

1  07 

I  II 

I  15 

1  19 

1  23 

1  27 

1  32 

1 36 

1  41 

1  5o 

1  61 

1  71 

8 

1  08 

I  13 

I  17 

1  22 

1  27 

I  32 

*  37 

I  42 

1  48 

1  59 

:s 

1  85 

9 

1  09 

I  14 

I  20 

1  25 

1  30 

1  36 

1  42 

1  49 

1  55 

1  69 

2  00 

IO 

1  10 

I  16 

I  22 

1  28 

1  34 

I  41 

1  48 

1  55 

1  63 

1  79 

1 97 

2  16 

ii 

1  12 

I  18 

I  24 

1  3i 

1  38 

1  46 

1  54 

1  62 

1  71 

1  90 

2  10 

2  33 

12 

1  13 

I  20 

I  27 

v1  3i 

1  43 

1  51 

1  60 

1  70 

1  80 

2  01 

2  25 

2  52 

1.3 

1  14 

I  21 

I  29 

\l  38 

1  47 

I  56 

1  67 

1  77 

1  89 

2  13 

2  41 

2  72 

14 

1  15 

I  23 

I  32 

I  41 

1  5i 

I  62 

1  73 

1  85 

1  98 

2  26 

2  58 

2  94 

*5 

1  16 

I  25 

1  35 

1  45 

1  56 

1  68 

1  80 

1  94 

2  08 

2  40 

2  76 

3  17 

16 

1  17 

I  27 

1  37 

1  48 

1  60 

1  73 

1  87 

2  02 

2  18 

2  54 

2  95 

3  43 

17 

1  18 

I  29 

1  40 

1  52 

1  65 

1  79 

*  95 

2  11 

2  29 

2  69 

3  16 

3  70 

18 

1  20 

I  31 

1  43 

1  56 

1  70 

1  86 

2  03 

2  21 

2  41 

2  85 

3  38 

4  00 

19 

1  21 

1  33 

1  46 

1  60 

1  75 

1  92 

2  11 

2  31 

2  53 

3  03 

3  62 

4  32 

20 

i  22 

1  35 

1  49 

1  64 

1  81 

1  99 

2  19 

2  41 

2  65 

3  21 

3  87 

466 

21 

1  23 

1  37 

1  52 

1  68 

1  86 

2  06 

2  28 

2  52 

2  79 

3  40 

4  14 

5  °3 

22 

1  24 

1  39 

1  55 

1  72 

1  92 

2  13 

2  37 

2  63 

2  93 

3  60 

4  43 

5  44 

23 

1  26 

1  41 

1  58 

1  76 

1  97 

2  21 

246 

2  75 

3  07 

3  82 

4  74 

587 

24 

1  27 

1  43 

1  61 

1  81 

2  03 

2  28 

2  56 

2  88 

3  23 

4  °5 

5  07 

6  34 

25 

1  28 

1  45 

1  64 

1  85 

2  09 

2  36 

2  67 

3  01 

3  39 

4  29 

5  43 

6  85 

26 

1  30 

1  47 

1  67 

1  90 

2  16 

2  45 

2  77 

3  i4 

3  56 

4  55 

5  81 

7  40 

27 

1  31 

1  49 

1  71 

1  95 

2  22 

2  53 

2  88 

3  28 

3  73 

4  82 

6  21 

7  99 

28 

1  32 

I  52 

1  74 

2  00 

2  29 

2  62 

3  00 

3  43 

3  92 

5  " 

6  65 

8  63 

29 

»  33 

1  54 

1  78 

2  05 

2  36 

2  71 

3  12 

3  58 

4  12 

5  42 

7  Jl 

9  32 

30 

1  35 

1  56 

1  81 

2  10 

2  43 

2  81 

3  24 

3  75 

4  32 

5  74 

7  61 

10  06 

3i 

1  36 

1  59 

«  85 

2  15 

2  50 

2  91 

3  37 

3  9i 

4  54 

6  09 

8  IS 

10  87 

32 

*  37 

1  61 

1  88 

2  20 

2  58 

3  01 

3  5i 

4  09 

4  76 

6  45 

8  72 

11  74 

33 

1  39 

1  63 

1  92 

2  26 

2  65 

3  11 

3  65 

4  27 

S  00 

6  84 

9  33 

12  68 

34 

1  40 

1  66 

1  96 

2  32 

2  73 

3  22 

3  79 

4  47 

5  25 

7  25 

998 

13  69 

35 

1  42 

1  68 

2  00 

2  37 

2  81 

3  33 

3  95 

4  67 

5  52 

7  69 

10  68 

14  79 

36 

1  43 

1  71 

2  04 

2  43 

2  90 

3  45 

4  10 

4  88 

5  79 

8  15 

11  42 

15  97 

37 

1  45 

1  73 

2  08 

2  49 

2  99 

3  57 

4  27 

5  10 

6  08 

8  64 

12  22 

17  25 

38 

1  46 

1  76 

2  12 

2  56 

3  07 

3  70 

4  44 

5  33 

6  39 

9  15 

13  08 

18  63 

39 

1  47 

1  79 

2  16 

2  62 

3  17 

3  83 

462 

5  57 

6  70 

9  70 

13  99 

20  12 

40 

1  49 

1  81 

2  21 

2  69 

3  26 

3  96 

4  80 

5  82 

7  04 

10  29 

14  97 

21  72 

41 

1  5° 

1  84 

2  25 

2  75 

3  36 

4  10 

4  99 

6  08 

7  39 

10  90 

l6  C2 

23  46 

42 

1  52 

1  87 

2  30 

2  82 

3  46 

4  24 

5,  i9 

6  35 

776 

8  15 

11  56 

17  14 

25  34 

♦3 

1  53 

1  90 

2  34 

2  89 

3  56 

4  39 

5  40 
5  62 

6  64 

12  25 

18  34 

27  37 

44 

1  55 

1  93 

2  39 

296 

3  67 

4  54 

6  94 

8  56 

12  99 

19  63 

29  56 

45 

1  56 

1  95 

2  44 

3  04 

3  78 

•4  70 

5  84 

7  25 

8  99 

13  76 

21  00 

31  92 

46 

1  58 

1  98 

2  49 

3  " 

3  90 

487 

6  oS 

7  57 

9  43 

14  59 

22  47 

34  47 

2 

1  60 

2  01 

2  54 

3  39 

4  OI 

5  04 

6  32 

7  92 

9  9i 

'5  47 

24  05 

37  23 

1  61 

2  04 

2  59 

3  27 

4  13 

5  21 

6  57 

8  27 

10  40 

16  39 

25  73 

40  21 

49 

1  63 

2  07 

2  64 

3  35 

426 

5  40 

6  83 

8  64 

10  92 

1738 

27  53 

43  43 

50 

1  64 

2  11 

2  69 

3  44 

4  38 

5  58 

7  " 

9  °3 

11  47 

18  42 

29  4* 

46  90 

And  how  to  Keep  it. 


283 


Table. — Compound   Interest. 


Showing  the  Amount  of  $1  improved  at  Compound  Interest  for  any 
number  of  years  not  exceeding  100. 


1 

a 

a 

a 

V 

0 

a 

c 

c 
8 

c 

a 

a 

i 

a 

u 

«5 

8 

u 

h 

ft 

8 

I 

8 

I 

8 

u 

u 

1 

8 

£ 

8 
u 

4> 

•< 

ft 

if 

& 

X 

ft 

* 

ft 

* 

1 

p. 

ft 

1 

M 

N 

« 

CO 

m 

-+ 

■«- 

10 

vO 

$3i  52 

00 

Si 

$1  66 

$2    14 

$2  75 

fe  52 

$4   52 

#5  78 

$   739 

$9   44 

$12  04 

$19  S3 

$50  65 

52 

1  68 

2  17 

2  80 

3  61 

465 

5  98 

7  69 

9  86 

1264 

20  70 

33  73 

54  71 

S3 

1  69 

2  20  2  86 

3  7° 

4  79 

6  19 

7  99 

10  31 

13  28|  21  94 

36  09 

59  08 

54 

1  71 

2  23;  2  9I 

3  79 

4  93 

6  41 

8  31 

10  77 

13  94   23  26 

38  61 

63  81 

55 

1  73 

2  27 

2  97 

3  89 

5  08 

6  63 

8  65 

11  26 

14  64.  24  65   41  32 

68  91 

56 

1  75  2  30 

3  03 

3  99 

5  23 

6  87 

8  99 

11  76 

IS  37j  26  13   44  21 

74  43 

57 

1  76 

2  34 

3  09 

4  °9 

5  39 

7  11 

9  35 

12  29 

16  14   27  70   47  30 

80  38 

58 

1  78 

2  37 

3  15 

4  19 

5  55 

7  35 

9  73 

12  85 

16  94 

29  36 

50  61 

86  81 

59 

1  80 

2  41 

3  22 

4  29 

5  72 

7  61 

10  12 

13  42 

17  79 

31  12 

54  16 

93  76 

60 

1  82 

2  44 

3  28 

4  4° 

5  89 

7  88 

10  52 

14  °3 

18  68 

32  99 

57  95 

101  26 

61 

1  83 

2  48 

3  35 

4  5i 

6  07 

8  15  10  94 

14  66 

19  61 

34  97   62  no 

109  36 

62 

I  85 

2  52 

3  4i 

462 

625 

8  44 

11  38 

15  32 

20  59 

37  06   66  34 

118  11 

63 

187 

2  55 

3  48 

4  74 

6  44 

8  73 

11  83 

16  01 

21  62 

39  29   70  99 

127  55 

64 

1  89 

2  59 

3  55 

4  86 

6  63 

9  °4 

12  31 

16  73 

22  70 

4i  65;  75  96 

137  76 

65 

1  91  2  63 

362 

4  98 

6  83 

9  36 

12  80 

17  48 

23  84 

44  14!  81  27 

148  78 

66 

I  93  2  67 

3  69 

5  10 

7  03 

9  68 

13  3i 

18  27 

25  03   46  79i  86  96 

160  68 

67 

1  95,  2  71 

3  77 

5  23 

7  25  10  02 

13  84 

19  09 

26  28  j  49  60   93  05 

173  54 

68 

1  97  2  75 

384 

5  36 

7  46 

10  37 

14  4° 

19  95 

27  60.  52  58   99  56 

187  42 

69 

1  99J  2  79 

3  92 

5  49 

7  69 

10  74 

14  97 

20  85 

28  98   55  73  Jo6  53 

202  41 

7° 

2  01 

2  84 

400 

563 

7  92 

11  11 

15  57 

21  78 

30  43 

59  08;  113  99 

218  61 

7i 

2  03 

2  88 

4  08 

5  77 

8  16 

11  So 

16  19 

22  76 

3i  95 

62  62  121  97 

236  09 

72 

2  05 

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4  16 

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23  79 

33  55 

66  38  130  51 

254  98 

73 

2  07 

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4  24 

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12  32 

17  52 

24  86 

35  22 

70  36!  139  64 

275  38 

74 

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12  75 

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25  98 

36  98 

74  58;  149  42 

297  41 

75 

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321  20 

76 

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6  53 

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19  70 

28  37 

40  77 

83  80  171  07 

346  90 

77 

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3  15  4  59 

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88  83 j  183  04 
94  16 i  195  85 

374  65 

78 

2  17 

3  19  4  69 

6  86 

10  03 

14  63 

21  31 

30  98 

44  95 

404  63 

e 

2  19 

3  24!  4  78 

7  03 

»°  33 

15  15 

22  16 

32  37 

47  20 

99  81  i  209  56 

437  00 

2  22 

3  29  4  88 

7  21 

10  64 

15  68 

23  05 

33  83 

49  56 

105  80 !  224  23 

47i  95 

81 

2  24 

3  34;  4  97 

7  39 

10  96 

16  22 

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52  04 

112  14  239  93 

509  71 

82 

2  26;  3  39'  5  07' 

7  57 

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36  94 

54  64 

118  87I  256  73 

550  49 

83 

2  28 

3  44,  5  i7i 

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57  37 

126  00  274  70 

594  53 

84 

2  3i 

3  491  5  28! 

7  96 

8  16 

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17  99 

26  97 

40  34 

60  24 

133  57  293  93 

642  09 

•j 

2  33 

3  54  5  38 

12  34 

18  62 

28  04 

42  16 

63  25 

141  58,  314  5° 

693  46 

86 

2  35 

3  60  5  49 

8  36 

12  71 

19  27 

29  17  44  06; 

66  42 

150  07  336  52 

748  93 

87 

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19  94  3o  33i  46  04; 

69  74 

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88 

2  40 

3  71  5  71 

8  78 

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20  64 

31  55  48  II; 

73  22 

168  62  385  28 

873  56 

89 

2  42 

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9  00 

13  88 

21  36 

32  8i|  50  27; 

76  89 

178  74!  412  25 

943  44 

90 

2  45 

3  82  5  94 

9  23 

14  3° 

22  H 

34  "J  52  54 1 

80  73 

189  46  441  10 

1,018  92 

9i 

2  47 

3  S8!  6  06 

9  46 

14  73 

22  89 

35  48 i  54  90 

84  77 

200  83 '  471  98 

1. 100  43 

92 

2  50 

3  93  6  18 

9  70 

15  17 

26  69 

36  9°|  57  37 j 

89  01 

212  88;  505  02 

1,  188  46 

93 

2  52 

3  99  6  31 

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15  63 

24  52 

38  38  59  95! 

93  46 

225  66  54°  37 

1,  283  54 

94 

2  55 

4  °5  6  43 

10  19 

16  10 

25  37 

39  9i  62  65 

98  13 

239  19  578  20 

I,  386  22 

95 

2,57 

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10  44 

16  58 

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253  55  618  67 

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96 

2  60 

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10  70 

17  08;  27  18 

43  i7j  68  42 

108  19,  268  76  661  98 1 

1,616  89 

II 

263 

4  24  6  83 

10  97 

'7  59  28  13 

44  9°:  7i  5o 

113  60  284  88  708  31 J 

1,  746  24 

265 

4  30  6  96 

11  24 

18  13  29  12  46  691  74  71 

18  66  30  14  48  56  78  08 

119  28I  301  98  757  90j 

1.  885  94 

99 

2  68 

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11  53 

125  24  320  10  810  95 1 

2,  036  82 

too 

2  70 

4  43, 

724 

II  81 

19  22 

3i  19 

50  5° 

81  59, 

131  5° 

339  30, 

867  72. 

2,   I99  76 

284  How  to  make  Money  make  Money, 

of  any  other  sum,  multiply  such  sum  by  the  amount  in 
the  proper  place  at  any  interest  from  one  to  eight  per 
cent. :  thus,  wanted  the  compound  interest  of  27  dollars 
for  21  years  at  3|-  per  cent  per  annum.  The  compound 
interest  of  a  dollar  for  that  time  is  $2.06,  multiplied  by 
27  dollars  gives  $55.62,  and  in  like  manner  for  any  other 
sum. 

INSURANCE. 

Under  this  head  is  classed  a  variety  of  modes  and 
kinds  of  Insurances.  Among  the  most  prominent,  are 
fire,  marine,  inland  and  life  insurance.  They  all  belong 
to  that  class  of  business, — making  money  with  money. 
They  are  again  subdivided  into  cash  and  mutual.  They 
are  considered  here  more  as  specimens  of  how  money  can 
be  made  with  money,  as  of  interest  to  the  money-maker, 
than  as  any  special  commendation  of  them,  as  the  most 
profitable  or  the  least  profitable  mode  of  doing  so.  It  is 
more  to  explain  their  existence  as  a  means  of  saving 
than  of  making. 

Like  banking,  they  are  usually  conducted  by  able 
business  men,  and  in  very  much  the  same  way.  They 
are  necessities  to  those  having  property  at  the  risk  of  the 
elements,  and  who  cannot  afford  to  lose  without  embar- 
rassments. To  the  money-maker  they  are  invaluable  as 
a  means  of  preventing  loss,  and  to  those  who  have  accu- 
mulated are  a  means  of  making  their  money  work  to 
advantage.  Sometimes  the  profits  of  such  business  are 
very  large  ;  and  sometimes,  and  more  frequently  than  in 
banking,  a  total  loss  of  the  money  invested.  In  all  busi- 
ness where  the  profits  are  large,  a  corresponding  risk  is 
run  of  loss.     There  is  a  fairer  chance  of  winning-  on 


And  how  to  Keep  it.  285 

marine  than  on  fire  insurance,  all  other  things  being 
equal. 

But  the  benefit  such  institutions  are  to  the  money- 
maker is,  that,  if  his  property  is  in  such  things  as  can  be 
destroyed  by  the  elements,  he  can,  by  the  payment  of  a 
small  amount  of  money  annually,  cover  his  loss  if  one 
occurs.  Therefore,  every  one  who  is  endeavoring  to 
make  money  should  keep  such  kind  of  property  fully 
insured.  An  hour's  neglect  may  lose  you  years  of  toil. 
Then  look  out  when  you  make  your  agreement  with  a 
company ;  see  that  it  is  put  into  the  body  of  the  policy, 
and  read  your  policy  over  from  the  first  word  to  the  last, 
carefully.  See  what  you  agree  to,  and  what  they  agree 
to  do.  Possibly  not  one  half  the  policies  that  are  signed 
are  read  over.  People  suppose  they  are  all  right,  and  so 
they  may  be.     But  read,  nevertheless. 

If  you  do  not  know  the  officers  to  be  honest  and 
honorable  men,  having  a  high  standing  as  such  in  the 
community,  let  such  companies  alone,  they  will  probably 
not  pay  you  if  you  have  a  loss.  If,  too,  you  know  of  a 
company  chafrlerng  and  screwing  down  a  loss,  and  do  not 
pay  fairly,  let  it  alone ;  these  men  will  treat  you  in  the 
same  way  in  your  distress.  They  have  been  paid  to  pay 
your  loss  in  full  to  the  extent  of  your  policy,  and  should 
do  so  as  cheerfully  as  take  your  money.  Look  more  to 
the  character  of  the  men  managing  than  to  the  capital, 
but  look  well  to  both.  Don't  trust  your  property  in  their 
hands  without  you  know  them,  or  of  them,  "  clown  to  the 
ground."  You  had  better  pay  a  fair  company,  one  who 
will  take  the  pains  to  find  out  what  your  whole  loss  is 
and  pay  it  promptly,  a  large  price  at  first,  than  have  ten 
times  that  amount  shaved  off  when  your  loss  occurs. 

No  company  will  ever  undertake  this  without  they  are 


286  How  to  make  Money  make  Money, 

steeped  in  ignorance  of  their  true  interests  ;  nor  will 
they  retain  an  agent  for  one  moment  who  will  try  to  save 
on  a  loss.  It  is  more  money  out  of  their  pockets  than 
out  of  that  of  the  insured.  The  manner  in  which  losses 
are  settled  by  companies  draws  business  and  profit,  or 
repels  it  and  makes  loss.  No  one  will  ever  forget  the 
company  or  man  who  shaves  him  under  such  circum- 
stances, nor  will  he  forget  the  one  who  deals  honestly 
with  him. 

The  insured,  then,  may  be  called  upon  to  take  the  pro- 
mise to  pay  of  a  company  for  a  large  amount.  Ask 
yourself  would  a  Bank  take  their  note  for  this  amount, 
and  give  the  money  upon  it.  Then,  to  have  profited 
duly  by  the  lessons  you  have  read,  you  must  inquire  of 
as  many  as  twelve  or  fourteen  successful  business  men  if 
they  would  do  so  ;  and  if  they  all  agree,  knowing  the 
company,  and  would  trust  it,  you  may  insure — as  a  safe 
rule,  and  not  otherwise. 

On  the  other  hand,  the  company  may  be  subject  to 
fraud  on  the  part  of  the  insured.  It  is  for  their  interest 
never  to  assume  fraud  without  positive  proof,  or  at  least 
such  proof  as  would  convince  a  jury  of  the  fact.  Better 
pay,  and  look  more  carefully  to  the  character  of  the 
insured  next  time.  They  will  make  more  money  in  the 
end.  Neither  for  their  own  interest  should  they  chaffer 
about  the  payment  of  such  a  loss  without  they  conclude 
to  test  it  by  law,  as  a  compromise  would  injure  them 
more  than  the  amount  saved,  as  one-half  of  those  who 
heard  of  it  would  take  it  for  granted  that  it  was  an  unjust 
settlement. 

The  same  general  principles  of  civility  and  pleasant 
manners,  and  an  interest  in  the  insured,  holds  good  in 
this  business,  as  in  banking  business.     All  tells  to  the 


And  how  to  Keep  it.  287 

profit  of  the  company  and  the  enlargement  of  dividends  ; 
and  generally  there  is  no  business  where  sound  judg- 
ment, honest  intent,  general  reputation  and  policy  is 
rewarded  with  more  promptness  than  in  this. 


288  How  to  make  Money  make  Money y 


CHAPTER  XXIII. 


LIFE    INSURANCE. 


Origin  of  Life  Insurance.  —  Progress.  —  Companies  established. 
—  Object.  —  Death  may  prevent.  —  Three  hard  problems.  — 
Mortality  table. — Life  expectancy. — Duties  to  reader. — Four 
kinds  of  Insurance  Companies.  —Stock. — Mutuals. — Crown- 
ing beauty. — Mutual  plan. — Twenty  and  ten  per  cent,  broker- 
age. —  Decisive.  —  Community  recommend.  —  Mutual  Life. — 
Organization.  —  Main  feature.  —  Equitable  principles.  —  Most 
made.  —  General  principle.  —  Note  and  cash  mutuals  all 
profits  equally  divided.  —  Frightful  exhibit.  —  Non-forfeiting 
principle. — What  mutual  life  has  done. — Good  exhibit. — Whole 
life  policies.  —  For  whom  most  suitable.  —  Secure  to  wife. 
— Table  rates. — Examples. — Grand  result. — Change  of  ideas. 
— Comparison  stocks  and  mutual. — Losses  and  gains. — Whole 
life  policy  illustrated. — Five  and  ten  year  payments. — Ten  year 
payments  illustrated.  —  Good  thing.  —  Instalment  feature. — 
Practical  operation. — Endowment  policy. — Table  of  rates. — 
What  Mutual  Life  says.' — Equitable  return. — Illustration  of  ten 
year  and  annual  endowments. — Children's  endowments. — Table 
of  rates. — Not  recommended. — Surrender  of  policies. — Special 
notice. — An  a£t. — Explanation  of  author. — Annuities.  —  Sur- 
vivorship annuity. — Single  life  annuity. — Tables  for  survivor- 
ship and  single  life  annuities. 

The  first  public  office  for  the  insuring  of  lives  originated  with  the 
Rev.  William  Anhote,  D.D.,  of  Middleton,  in  Lancashire,  England, 
for  the  benefit  of  the  widows  of  clergymen  and  others,  and  for  the 
settling  of  jointures  and  annuities  This  design  was  undertaken  and 
established  by  the  "  Mercers'  Company,"  which  in  1698  settled  the 
sum  of  ,£2,888  per  annum  as  a  security  for  the  yearly  payment  of 
^30  during  the  life  of  any  widow  whose  husband  had,  in  his  health, 
subscribed  ,£100  to  the  fund  ;  and  so  in  proportion  for  any  greater 
or  less  amount.  In  1699  another  similar  institution  was  formed, 
under  the  name  of  "  The  Society  of  Assurance  for  Widows  and 
Orphans."  In  July,  1706,  the  first  general  office  for  this  kind  of 
security  was  founded  by  a  charter  from  Queen  Anne,  and  called 


And  how  to  Keep  it.  289 

"  The  Amicable  Society,  or  Perpetual  Assurance  ;  "  and  it  is  probable 
that  about  the  same  period  many  other  projects  of  a  like  nature 
appeared,  of  which  no  traces  are  now  remaining. 

"The  Royal  Exchange  Assurance  Company"  was  established 
by  a  charter  dated  June  20,  1720;  the  original  powers  of  which 
were  extended  by  another  charter,  issued  in  the  following  year,  to 
the  insurance  of  lives  and  against  casualties  and  accidents  by  fire. 
The  "  London  Assurance  Company "  was  also  incorporated  in 
1721,  in  consequence  of  the  same  Act,  for  granting  similar  securi- 
ties ;  and  these  appear  to  have  been  the  only  associations  instituted 
for  general  life  insurances  until  the  year  1762,  when  "The  Equi- 
table Society  "  was  formed,  in  Consequence  of  the  recommendation 
of  Professor  Simpson  in  his  lectures.  Mr.  James  Dodson  also 
appears  to  have  assisted  in  the  design,  by  supporting  the  plan,  and 
composing  some  of  the  tables.  About  the  same  period,  a  number 
of  other  societies  were  projected  and  formed,  under  the  specious 
pretence  of  being  institutions  "for  the  benefit  of  old  age,"  being, 
however,  for  the  most  part,  false  in  principle,  and  mischievous  in 
effect ;  but  towards  the  conclusion  of  the  eighteenth  century,  and  the 
commencement  of  the  present,  several  new  and  valuable  companies 
for  life  insurance  were  founded.  The  following  statement  furnishes, 
perhaps,  the  clearest  view  of  the  advance  and  employment  of  life 
insurances  down  to  the  present  time  :  In  England,  from  1706  to  this 
date,  upwards  of  100  life  insurance  companies  have  been  founded. 
The  first  life  insurance  company  established  in  the  United  States 
was  the  "Hospital  Life  Insurance  Company"  of  Boston,  which 
commenced  its  operations  in  the  year  1825.  The  "New  York  Life 
and  Trust  Company"  then  followed  in  1829,  but  the  life  insurance 
department  of  their  business  was  very  limited.  It  will  be  seen  that 
this  subject  is  comparatively  new  in  this  country,  few  persons  having 
availed  themselves  of  its  advantages  prior  to  the  year  1843,  when 
the  first  mutual  companies  were  established,  under  the  names  of  the 
."Mutual  Life  Insurance  Company  of  New  York,"  and  the  "New 
England  Life  Insurance  Company  of  Boston."  The  next  were  the 
"State  Mutual,  of  Worcester,  Mass.,"  the  "Mutual  Benefit  of 
Newark,"  and  the  "  New  York  Life  Insurance  Company,"  of  New 
York  City,  established  in  1845.  Since  that  date  several  other  com- 
panies have  been  established  in  different  sections  of  the  country. — 
Norton. 


It  will  be  seen  from  this  that  Life  Insurance  is  attract- 
ing more  attention  each  year ;  and,  as  every  one  knows, 
has  now  become  a  highly  important  feature  in  the  financial 
world.  The  object  is  of  such  a  nature  as  to  commend 
itself  to  every  reflecting  mind.  As  we  have  insisted  that 
it  is  the  moral  and  political  duty  of  all  to  so  arrange 


290  How  to  make  Money  make  Money, 

their  affairs  financially,  that  they  under  no  circumstances 
shall  become  a  burden  upon  the  public  or  upon  friends, 
this  department  of  finance  seems  the  best  way  by  which 
such  a  result  can  be  obtained.  For  if  the  individual  be 
alone,  and  no  one  dependent  upon  him,  it  will  be  shown 
that  he  can  accumulate  for  himself,  as  fast  as  in  any 
other  way,  on  small  amounts,  while  if  he  has  others 
dependent  upon  him,  it  is  the  only  way  that  an  inde- 
pendence can  be  certainly  obtained  for  them. 

However  industrious,  prudent,  and  saving  one  may  be 
under  such  circumstances  of  protection,  death  stands  at 
his  door  to  put  an  end  at  any  time  to  such  efforts,  how- 
ever well  directed.  There  is  then  but  one  loop-hole  of 
escape  from  such  responsibility,  and  but  one  way  by 
which  any  one  thus  situated  may  see  his  way  clear, 
and  conquer  even  the  efforts  of  death  to  prevent.  The 
life  insurance  meets  this  case  ;  and  while  it  does  this 
effectually,  if  it  at  the  same  time  accomplishes  another 
end,  of  making  money  make  money  to  the  best  advan- 
tage, it  is  still  better ;  but  if  still  again  it  shows  how, 
and  does  keep  it,  a  treble  result  is  obtained  ;  and  three 
harder  problems  are  not  to  be  found  in  the  range  of 
financial  skill.  If,  then,  their  solution  can  be  accom- 
plished by  the  most  simple  and  uneducated  in  finance, 
here  may  be  said  to  be  the  Eldorado  of  the  protector's 
hope,  if  not  of  the  unskilled  money-maker  and  saver. 

Let  every  one,  then,  who  has  such  obligations  upon 
him,  consider  well  their  binding  force,  politically  and 
socially,  if  he  has  no  promptings  of  affection  or  love  to 
the  same  end.  As  a  means  of  quickening  these  consid- 
erations, let  him  look  over  a  mortality  table,  which  we 
furnish,  with  his  expectancy  of  life,  and  it  will  in  all 
probability  arouse  him  to  sudden  and  energetic  action  in 


And  how  to  Keep  it. 


291 


the  right  direction,  before  his  opportunities  to  do  so  are 
ended,  with  no  chance  to  retrace  or  amend. 

Table 


Showing  the  probable  number  of  persons  living  at  the  end  of  each 
year  out  of  every  1,000  born  at  the  same  time,  and  the  life  ex- 
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The  basis  of  life  insurance  is  laid  in  what  are  denom- 
inated Mortality  Tables.  They  are  prepared  by  taking 
a  large  number  of  cases,  and  from  experience  ascertain- 
ing the  average  extent  in  duration  of  life,  from  any  given 
age.  The  results  vary  in  different  parts  of  the  world. 
The  table  now  in  use  as  a  basis,  with  slight  variations  in 
practice  in  this  country,  is  taken  from  observations  for 
nine  years,  ending  in  1787,  at  Carlisle,  in  England.    The 


292  How  to  make  Money   'Hake  Money, 

length  of  time  any  one  has  by  their  chances  to  live  is 
called  their  life  expeclancy.  A  close  inspection  of  this  table 
will  show  what  the  life  insurance  is  intended  to  guard 
against. 

So  far  as  the  objects  of  this  work  are  involved  in  this 
very  important  principle  of  life  insurance,  we  have  but 
two  duties  to  perform  to  the  reader. 

First — To  show  the  best  means  of  using  it. 

Second — To  point  out  the  safest  and  most  lucrative 
plan  to  use  it. 

This  article,  and  for  this  object,  was  first  written  about 
seven  years  ago,  and  the  conclusions  arrived  at  then  have 
materially  changed  in  its  favor  within  that  time.  All, 
however,  we  hold  ourselves  responsible  for  now,  is  simply 
to  furnish  facls,  and  give  an  individual  opinion  upon 
them,  which  it  is  believed  will  be  borne  out  by  subse- 
quent results. 

Insurance  companies  are  principally  founded  upon 
four  different  bases  :  the  cash  stock  and  cash  premi- 
ums, in  which  the  insured  have  no  interest  in  the  profits, 
the  other  three  being  mutual,  in  which  the  insured  have 
an  interest  in  the  profits.  Of  these  latter  some  have  a 
cash  capital,  and  the  premiums  are  paid  in  cash  and  in 
notes.  Others  have  no  cash  capital,  and  the  premiums 
are  paid  in  like  manner ;  while  others  have  no  cash  capi- 
tal, and  the  premiums  are  all  paid  in  cash.  All  have  the 
same  object  ;  and  it  is  for  the  insured  to  say,  after  a  care- 
ful investigation  of  the  foundations  upon  which  they  are 
raised,  and  the  benefits  flowing  to  the  insured,  which  one 
of  the  four  classes  he  will  select.  A  life  policy  is  some- 
thing of  an  undertaking,  and  especially  if  the  insured 
has  no  aid  from  any  source  to  ease  his  payments.  For 
as  he  grows  older,  as  a  general  thing  his  ability  to  pay 


And  how  to  Keep  it.  293 

becomes  less,  and  from  this  cause  may  endanger  his 
profits  of  previous  payments. 

The  mutual  plan  obviates  this  controlling  objection  to 
life  insurance,  and  by  division  of  profits  lightens  the 
payments  from  year  to  year,  and  in  the  most  successful 
mutual  cash  company  now  doing  business  in  the  United 
States,  they  cease  altogether  in  sixteen  years.  This  is 
the  crowning  beauty  of  the  mutual  cash  plan,  and,  as  a 
consequence,  the  business  is  not  only  increasing  but 
assuming  gigantic  proportions.  Results  in  business  ope- 
rations are  the  true  tests  of  merit  of  the  kind  of  business 
done.  Individual  opinions  may  be  of  some  value  as  to 
the  best  of  the  three  modes  of  mutual  insurance,  but  this 
is  proof  positive. 

One  thing  is  certain,  that  no  mutual  company 
can  do  a  successful  business  on  notes  without  the  notes 
are  paid ;  and  if  the  insured  gets  no  benefit  the  cash 
plan  is  the  safest,  for  then  he  knows  what  he  can 
do,  and  acts  accordingly,  while  in  the  plan  of  giving 
notes  an  undertaking  is  gone  into  which  may  or  may  not 
be  within  his  control  to  carry  out.  There  is  one  fact- 
connected  with  the  two  modes  of  insurance  which  the 
insured  should  know.  In  the  mutual  note  and  cash,  the 
brokerage  paid  for  procuring  insurance  is  twejity  per  cent. 
on  cash  portion,  while  in  the  cash  mutual  it  is  but  ten. 
This  to  a  shrewd  business-man  is  a  significant  facl,  and 
so  far  as  we  would  be  concerned,  if  we  were  about  to 
insure,  would  be  decisive. 

Having  looked  at  this  point  as  part  of  the  expenses  of 
the  mutual  plan,  there  are  others  that  bear  upon  it  in 
like  manner.  The  larger  the  business  done  the  less  will 
be  the  expense  to  be  borne  by  each  one  insured,  and  the 
larger  will  be  the  dividend  of  profits  arising.     The  truth 


294  How  to  make  Money  make  Money, 

of  the  whole  matter  lies  just  here :  the  most  successful 
company,  or  that  which  has  received  the  largest  amount 
of  public  patronage,  and  especially  so  when  the  brokerage 
for  procuring  insurance  is  one-half  less  than  others,  is  the 
highest  recommendation  such  style  of  company  can 
have,  for  it  is  not  an  individual  opinion,  but  the  opinion 
of  the  community. 

Then,  in  a  word,  to  those  about  to  insure,  look  for  that 
company,  and  insure  in  it.  Your  money  is  safe,  and  your 
beneficiaries  will  be  paid,  calculating  on  human  proba- 
bilities. Upon  the  same  general  principle  that  you 
select  the  heaviest  bank  to  deposit  your  money  in, 
although  there  may  be  others  equally  good,  of  smaller 
means. 

The  most  successful  mutual  cash  company  in  the 
United  States,  or  in  the  world,  is  the  Mutual  Life  Insur- 
ance Company  of  New  York.  Those  who  insure  in  that 
company  become  partners,  and  by  the  charter  have  no 
liabilities  of  loss,  but  participate  in  the  profits.  They 
have  made  very  decided  improvements  in  the  style 
of  their  business,  for  the  benefit  of  the  insured,  since 
its  first  organization,  and  the  result  of  these  changes 
has  increased  its  business  within  the  last  year  nearly 
one-half  of  its  whole  business  outstanding  at  that 
time. 

The  main  feature  which  has  given  the  greatest  impe- 
tus to  their  popularity  among  seekers  after  life  insur- 
ance, is  the  equitable  division  of  profits  among  the 
insured.  In  1862  they  adopted  the  contribution  plan 
originated  by  their  actuary,  Mr.  Sheppard  Homans,  by 
which  every  policy-holder  receives  his  dividend  of  profits 
just  in  proportion  to  the  interest  he  has  in  the  funds 
of  the    company.     This  feature    originated   with    them, 


And  how  to  Keep  it.  295 

and  they  are  now  receiving  as  a  company  the  benefit  of 
such  a  just  arrangement.  Other  companies  have  adopted, 
and  are  following,  the  example  of  the  Mutual  Life. 

To  explain  this  more  fully,  one  man  insured  in  1850, 
and  one  in  i860,  for  the  same  amount.  The  one  insured 
in  1850  has  paid  more  money  into  and  has  more  to  his 
credit  than  the  one  who  insured  in  i860.  The  dividend 
of  profits  is  now  made  in  proportion  to  the  amount  to 
each  one's  credit,  by  which  operation  each  gets  his  just 
share  of  profit. 

This  principle  is  the  one  so  closely  pressed  in  this 
work,  and  the  illustration  of  it  in  the  success  of  the 
Mutual  Life  is  a  strong  indorsement  of  the  opinion.  To 
do  business  for  the  interest  of  those  you  do 'business  for, 
is  a  sure  road  to  success.  It  inspires  confidence  and 
makes  innumerable  friends,  beside  those  benefited  directly. 
Every  dollar  an  individual  loses  by  a  life  insurance 
company  is  two  dollars  taken  out  of  its  earnings  in  the 
future,  though  one  may  be  added  temporarily.  We  mean 
loss  beyond  the  just  charge  for  the  risk  for  the  time  the  in- 
sured pays,  and  if  it  be  in  a  mutual,  a  just  and  accurate  pro- 
portion of  the  expenses  for  the  time  insured.  The  position 
of  a  life  insurance  company  to  make  money  out  of 
those  they  pretend  to  be  protecting  for  a  charitable  end,  is 
a  false  one.  The  true  principle  should  be  that  whatever 
the  insured  pays  to  a  company  as  premium  on  any  risk,  should 
stand  to  his  credit  till  death  occurs,  or  the  just  proportion 
refunded.  Because  the  company  would  make  the  most 
rrwney  by  it,  besides  being  the  protector  of  the  unfortunate. 
Instead  of  taking  from  those  who  could  pay  no  longer 
what  they  had  intrusted  to  the  care  of  the  company,  the 
company  would  be  sought  for  as  a  bank  of  savings,  to 
return  or  at  least  keep  for  their  benefit  their  hard  earn- 

13 


296  How  to  make  Money  m*ke  Money, 

ings.  A  savings  bank  will  not  close  its  books  aad  refuse 
to  pay  a  depositor  what  he  has  earned  because  he  can- 
make  no  more  money,  nor  should  a  life  insurance  com- 
pany do  the  equivalent. 

In  the  mutuals,  note  and  cash  system,  those  insuring 
at  different  times  for  the  same  amount  get  the  same 
amount  of  dividend.  So  that  if  the  company  receives  a 
large  accession  to  its  business,  the  new-comers  take  what 
really  belongs  to  the  older  insurers  ;  a  system  of  injus- 
tice that  soon  becomes  burdensome  even  to  those  who 
now  insure,  and  as  the  business  increases  becomes  more 
and  more  so. 

Another  feature  in  the  Mutual  Life  Insurance  Com- 
pany of  New  York,  is  the  non-forfeiting  of  policies  when 
the  individual  becomes  unable  to  pay.  In  former  years, 
and  before  the  adoption  of  this  plan,  thousands  were 
deterred  from  insuring  by  the  large  excess  of  policies 
forfeited  over  those  actually  paid.  Thus,  in  1859,  tms 
company  forfeited  302  policies;  cancelled,  136;  sur- 
rendered, 266 ;  expired,  80 ;  paid  from  death,  98.  A 
frightful  exhibit  to  one  who  had  the  idea  of  insuring  his 
life. 

These  things  are  now  ameliorated,  and  any  policy- 
holder, who  has  paid  money  into  the  company  on  a 
policy,  can  get  an  equitable  return  or  paid-up  policy  for 
the  money  which  he  has  paid.  Of  course  he  cannot  get 
all,  for  his  life  has  been  insured  in  the  meantime,  and  if 
he  had  died  the  company  would  have  been  bound  to  pay 
the  whole  amount  of  the  policy.  Other  companies  of 
like  construction  have  adopted  and  are  following  the  ex- 
cellent and  popular  exahiple  of  this  company  in  these 
respects.  To  get  this  advantage  now,  however,  the  policy- 
holder must  apply  before  his  premium  becomes  due. 


And  how  to  Keep  it.  297 

The  success  of  this  company  has  been  so  amazing,  that 
although  they  have  paid  claims  by  death  of  $6,464,713, 
in  less  than  twenty-five  years,  they  have  never  yet  for 
any  purpose  touched  a  dollar  of  cash  premiums  paid  in, 
but  have  been  able  to  meet  all  demands  from  the  profits 
of  business  without  touching  moneys  paid  as  premiums. 
They  have  paid  in  the  past  twenty-three  years  dividends 
to  their  policy-holders,  $10,176,388  in  cash,  or  equivalent 
additions  to  their  policies  of  $22,000,000,  and  now  hold 
cash  assets  of  $20,000,000.  This  is  an  exhibit  which 
removes  all  human  doubt  as  to  ultimate  security  of  the 
policy-holder,  for  if  every  dollar  of  its  assets  were  swept 
away  now  invested  in  bonds  and  mortgages,  real  estate, 
in  buildings,  State  and  United  States  bonds,  and  cash  on 
hand,  the  regular  premiums  payable  in  cash  would  not  be 
consumed,  in  all  probability,  in  payment  of  policies  falling 
due. 

This  state  of  things  has  been  brought  about  by  the 
equity  of  the  plan  of  doing  the  business,  and  the  general 
economy  of  its  management.  The  prudent  investment 
of  its  funds,  cash  system  in  its  transactions,  scrutiny  of 
the  risks  taken,  and  low  expenses,  have  enabled  the  com- 
pany to  make  dividends  to -life  policy-holders,  so  that 
their  dividends  exceed  their  annual  premiums  after  a  run 
of  the  policy  for  sixteen  years.  The  dividends  are  either 
payable  in  cash,  at  the  option  of  the  insured,  or  can  be 
applied  to  extinguish  premiums  or  increase  insurance. 

With  a  full  conviction  that  this  company  offers  the 
largest  inducements  to  life  insurance  seekers,  we  have 
taken  the  liberty  to  use  their  tables  in  this  work,  to  show 
to  those  whose  wish  it  is  to  make  provision  in  this  way 
for  themselves  or  those  dependent  upon  them,  the  mode 
of  operation.     There  are  undoubtedly  other  companies 


298 


How  to  make  Money  make  Moneyt 


equally  responsible  with  this,  but  none  probably  who  will 
pretend  to  question  the  supposed  facls  herein  stated. 

WHQLE  LIFE  POLICIES. 

These  can  be  paid  for  in  four  ways  ;  in  annual  premi- 
ums in  first  ten  annual  payments,  or  in  first  five  annual 
payments,  or  in  one  payment.  Below  are  the  tables  of 
the'  Mutual  Life,  and  the  rates  are  about  the  same  in  all 
mutual  companies. 

Whole  Life   Table. 

Premiums  for  an  insurance  of  $1,000  (other  amounts  to  extend  to 
$20,000,  in  same  proportion),  in  the  Mutual  Life  Insurance 
Company  of  New  York. 


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1 

These  policies  are  more  especially  suitable  for  all  sala- 
ried persons,  or  those  having  a  small  stated  income. 
Though  no  person  in  trade,  or  in  any  occupation  about 
which  there  is  risk  of  failure,  should  fail  to  lay  aside 
enough  to  pay  for  a  life  policy  which  would  give  them 
some  reserve  fund  in  case  of  accident  ;^a?id be  careful  not 
to  insure  in  any  company  that  does  not  secure  a  non-forfeit- 


And  how  to  Keep  it.  299 

able  benefit  for  what  yon  do  pay.  Look  at  the  vicis  situdes 
of  commercial  life  and  see  what  proportion  fall  by  the 
wayside  into  actual  poverty  that  could,  while  their 
thousands  were  passing  like  snow-flakes,  have  secured  to 
themselves  and  their  families,  a  home,  without  missing; 
the  trifle  in  money  that  it  would  have  cost. 

No  one  is  free  from  such  chances  of  calamity,  and  the 
life  policy  to  the  wife,  under  certain  restrictions  named 
hereafter,  cannot  be  reached  by  the  a-editor.  At  the  high 
tide  of  prosperity  which  generally  takes  place  in  a  man's 
life  about  thirty-five  years  of  age,  a  life  policy  of  ten  thou- 
sand dollars  will  cost  in  the  Mutual  Life  in  ten  annual 
payments,  cash  dividends  applied,  about  $3,200 — an 
amount  which  is  often  lost  by  injudicious  credits,  or  in 
some  odd  speculation.  If  men  could  see  the  down-hill 
side  of  life  as  it  will  be,  very  few  would  be  without  this 
comfort  to  purchase  a  snug  little  home  to  shelter  those 
they  cherish  and  have  always  the  good-will  to  protect. 

The  plan  of  paying  in  five  or  ten  years  is  a  beautiful 
feature  in  life  insurance,  as  any  one  can  make  good  the1 
payments  in  an  ordinary  business,  and  secure,  without 
knowing  or  feeling,  that  this  anchor  to  the  windward  has 
been  laid.  While  fortune  smiles  and  success  runs  high, 
few  ever  cast  a  glance  into  the  chances  of  the  future.  It 
wpuld  be  better  if  they  did,  and  study  statistics. 

We  give  examples  of  a  few  policies  now  running  to 
show  the  increase,  and  dividends  paid. 


Soo 


How  to  make  Money  make  Money, 


Examines  of  Life  Policies,  of  $i,coo  each,  in  the  Mutual  Life 
Insurance  Company  of  New  York. 


Age 

Year  when 

Present 

Annual 
Pre- 
mium. • 

Total 
Paid  in 

Cash 

Dividend. 

1866. 

c 

Additions 
for 

Total 
Additions 

Issue. 

Issued. 

Age. 

Years 
1863-6. 

Dividend 
of  1866. 

for  Whole 
Time. 

(-1863 

33 

$23   02 

$69  06 

$24  73 

36 

$71    47 

$7i  47 

1858 

38     . 

23   02 

69  06 

38  97 

56 

101   56 

269  19 

30 

\   1853 

43 

23   02 

69   06 

54  63 

79 

127    62 

469  17 

1848 
Ll843 

48 

23   60 

70   80 

75  65 

107 

157  77 

648  61 

53 

23   60 

70    80 

92  03 

130 

171  37 

767  88 

fi863 

38 

26   87 

80   6l 

31  3i 

39 

81  60 

81  60 

1858 

43 

26   87 

80   6l 

47  35 

59 

no  62 

307  56 

35 

«  i853 

48 

26   87 

80   6l 

66  90 

83 

139  15 

550  67 

1848 

53 

27   50 

82    50 

87  14 

106 

162  26 

667  21 

Li  843 

58 

27   50 

82    50 

114  84 

139 

191  83 

918  13 

fi863 

43 

3i  73 

95  19 

36  60 

38 

85  5i 

85  5i 

J  1858 

48 

3i  73 

95  19 

57  85 

61 

120  65 

33o  79 

40 

\  i853 

53 

31  73 

95  19 

76  97 

81 

143  32 

521  60 

|  1848 

58 

32  00 

96  00 

99  40 

103 

166  06 

672  21 

L1843 

63 

32  00 

96  00 

129  50 

135 

195  73 

808  87 

fi863 

48 

38  04 

114  12 

44  12 

39 

01 

92  01 

1858 

53 

38,  04 

114  12 

65  06 

57 

121   16 

330  70 

45 

-  1853 

58 

38-04 

114  12 

89  64 

79 

149  76 

536  08 

1848 

63 

37  30 

in  90 

117  63 

105 

177  90 

673  60 

L1843 

68 

37  30 

in  90 

153  o7 

137 

211  71 

830  72 

The  above  table  exhibits  the  dividend  of  1866  upon  policies  in 
force. 

The  policy  for  $1,000  issued  in  the  year  1843,  at  age  30,  having  a 
dividend  of  130  per  cent,  not  only  has  the  entire  future  premium 
cancelled,  but  is  practically  a  paid-up  policy  for  $1,767.88.  This 
amount  will  gradually  increase  every  year  during  the  life  of  the 
person  assured. 

No  more  cash  premiums  are  required  on  any  of  the  above  poli- 
cies issued  previous  to  the  year  1853. 

The  average  annual  dividend  (of  1866)  on  all  policies  issued  in 
the  first  ten  years  of  the  company's  history  (1843-52  inclusive),  is 
103  per  cent,  (in  cash  value)  on  the  annual  premiums. 


And  how  to  Keep  it.  301 

As  the  groundwork  of  life  insurance  is  laid  in  the  ab- 
solute money  paid,  it  is  interesting  to  the  insured  to 
know  how  to  determine  the  best  companies  to  insure 
in  order  to  get  the  largest  amount  for  their  money.  Not 
the  company  that  promises  the  most,  but  the  one  that  by 
calculation  from  what  it  has  accomplished  in  a  series 
of  years,  is  still  increasing.  In  the  old  style  of  insur- 
ance, it  was  supposed  if  they  paid  a  dividend  on  their 
cash  capital  and  had  a  surplus  in  premiums  the  concerns 
were  doing  well. 

The  mutual  plan,  however,  has  changed  these  ideas, 
and  a  new  state  of  things  has  arisen.  The  comparison 
between  the  cash  stock  cash  premium  companies,  wherein 
the  insured  have  no  interest  in  the  profits,  and  in  case  of 
death  only  receive  the  amount  of  their  policy,  no  matter 
how  long  it  has  run,  and  the  mutual  plans,  leads  to  won- 
derful differences,  especially  on  long  dates/  On  long 
runs  of  such  policies  the  losses  to  the  insured  become 
terrific  in  the  cash  stock,  companies,  and  are  superior  only 
on  the  first  year  to  the  best  cash  mutuals. 

In  order  to  make  the  comparison  understandingly,  we 
will  take  the  extreme  case  where  one  in  one  thousand 
lives  to  the  age  of  10 1.  There  is  one  such,  according  to 
the  Carlisle  table  of  mortality.  We  will  suppose  that  he 
insures  a  whole  life  for  $13,525,  at  the  age  of  30  years, 
and  that  he  pays  into  the  cash  stock  company  his  yearly 
premium  till  he  is  10 1  years  old :  that  is,  for  71  years. 
The  yearly  premium  is  $230.20,  or,  in  other  words,  a  tri- 
fle more  than  73  cents  per  day  for  313  days.  This,  by 
the  table  of  earnings,  will  give  for  71  years,  at  5  per  cent., 
$146,193.66.  From  this  it  will  be  seen  that  if  the  annual 
payment  had  been  deposited  in  a  savings  bank,  at  5  per 
cent,  compound  interest,  instead  of  having  been  paid  to 


302  How  to  make  Money  make  Money, 

the  cash  stock  company,  this  sum  would  have  been  to 
the  credit  of  the  insured,  whereas  all  he  would  get  from 
the  insurance  company  would  be  the  amount  of  his  pol- 
icy, $13,525.  Hence,  by  insuring  instead  of  investing 
in  that  way,  his  estate  would  have  made  a  dead  loss  of 
$132,668.66. 

Suppose,  instead  of  insuring  in  the  stock  company  for 
$13,525,  he  had  insured  for  $10,000  in  a  cash,  mutual, 
premium  $230.20,  that  equalled  in  profits  the  accumula- 
tions in  the  savings  bank  of  5  per  cent.,  the  estate  of  the 
insurer  would  have  had  $146,193.66;  consequently,  he 
would  have  lost  $132,668.66  in  the  stock  company  on  a 
policy  of  $13,525,  as  against  an  investment  in  a  savings 
bank,  and  gained  in  a  cash  mutual  company  doing  as  well 
as  the  bank,  in  profits,  $146,193.66,  on  a  policy  of 
$10,000. 

Suppose,  however,  we  consider  the  subject  with  refer- 
ence to  a  six  per  cent,  investment  in  a  savings  bank  and  a 
life  insurance  in  a  cash  stock  and  cash  premium  company 
on  this  same  life.  The  savings  bank  will  have  to  the 
credit  of  the  assured  the  sum  of  $242,472.15,  while  the 
cash  stock  company  would  have  $13,525  to  the  credit  of 
the  assured.  If  the  cash  mutual  life,  on  a  policy  of 
$10,000,  would  do  for  the  assured  as  well  as  the  savings 
bank,  he  would  have  the  same  amount,  $242,472.15.  The 
assured  would  lose  $228,947. 1 5  in  the  cash  stock  on  a  pol- 
icy of  $13,525,  and  receive  $242,472.15  in  the  cash  mu- 
tual on  a  policy  of  $10,000.  It  is  doubtful,  however, 
whether  the  cash  mutual  will  ever  be  able  to  do  as  well 
for  the  assured  as  six  per  cent,  on  the  annual  rates,  though 
the  Mutual  Life  now  does  as  well  as  six  per  cent,  on  the 
money  paid  in. 

The  mode  of  getting  at  this  result  from  the  tables 


And  how  to  Keep  it.  303 

in  this  book  is,  first  to  ascertain  the  daily  payment  for 
313  days,  being  73  cents.  This,  by  table  of  earnings,  in 
50  years  will  give  $68,559.24  ;  compounded  at  6  per  cent, 
for  21  years  gives  $233,101.41  ;  and  73  cents  for  the  same 
21  years  will  give  in  earnings  $9,370.74,  and  added  toge- 
ther gives  $242,*472.i5. 

The  yearly  premium  in  the  stock  companies  is  less 
on  the  same  amount  of  policy  on  the  start  than  in  the 
cash  mutual,  being  in  the  stock  company  $170.20  on 
$10,000,  at  30  years  of  age,  while  it  is  $230.20  in  the 
mutual.  The  total  amount  of  cash  paid  by  the  insured 
in  the  case  cited  would  be,  in  the  stock  company,  $12,- 
084.20,  while  in  the  mutual,  on  the  basis  of  dividend  of 
1866,  it  would  be  $3,069.43,  without  noticing  interest. 
The  first  yearly  premiums  differ  $60,  the  second  are 
about  the  same,  while  in  the  mutual  they  decrease  rap- 
idly, and  in  the  other  they  remain  the  same  always. 

We  will  now  give  an  example  of  the  operation  of  a 
whole  life  policy  in  the  Mutual  Life .  of  New  York,  on 
next  page,  on  the  basis  of  dividend  of  February  1,  1866. 

From  this  we  find  that  in  ten  years  there  is  an  addi- 
tion in  value  to  the  policy  of  $3,247.99  ;  in  fifteen  years, 
of  $5,631.29;  in  twenty-five,  of  $12,152.50.  That  there 
was  in  the  first  ten  years,  of  aclual  cash  paid,  of  $1,691.- 
17  ;  for  fifteen  years,  of  $2,284.83  ;  for  twenty-five  years, 
of  $3,050.43.  If  the  whole  premiums  had  been  paid 
without  dividends  to  help,  in  the  first  ten  years,  there 
would  have  been  paid  in  cash,  $2,687.00 ;  for  the  first 
fifteen  years,  $4,030.50;  for  the  first  twenty-five  years, 
$6,717.75. 

By  examination  it  will  be  seen  that  the  insured  at  the 
end  of  the  first  year  has  added  $254.24  to  the  value  of 
his  policy,  and  had  his  life  insured  for  $10,000  for  $14.46, 

13* 


304 


How  to  make  Money  make  Money, 


Whole  Life  Policy  for  $10,000,  issued  at  age  of  35,  Annual  Pre 
mium,  $268.70. 


*  It  will  be  seen  that  when  the  dividends  are  allowed  to  remain  with  the  company, 
the  policy  and  additions  become  paid  up  in  full  in  sixteen  years  ;  or,  in  other  words,  the 
annual  dividends  exceed  the  annual  premiums. 

or  a  little  over  five  per  cent,  on  his  premium.  At  the 
end  of  the  second  year  he  has  paid  in  all,  in  cash,  $443.87, 
and  has  added  to  the  value  of  his  policy  $523.20 — cost- 
ing nothing  to  insure,  and  has  made  $79.33,  being  a  trifle 
short  of  eighteen  per  cent,  on  the  amount  of  cash  paid  in 
or  invested.  At  the  end  of  the  third  year  he  has  paid  in 
all,  in  cash,  $614.89,  and  has  added  to  the  value  of  his 
policy  $806.07,  costing  nothing  to  insure,  and  has  made 
$191.18,  'being  a  trifle  over  thirty-one  per  cent,  upon  the 


And  how  to  Keep  it.  305 

cash  invested.  At  the  end  of  the  fourth  year  ne  has  paid 
in  all,  in  cash,  $782.11,  and  has  increased  the  value  of  his 
policy  $1,103.24,  costing  nothing  to  insure,  and  has  made 
$321.13,  being  about  forty-three  per  cent,  upon  the  in- 
vestment. At  the  end  of  the  fifth  year  Jie  has  paid 
$94541,  and  increased  the  value  of  his  policy  $1,415.23, 
and  has  made  $469.82  ;  a  trifle  short  of  fifty  per  cent,  up- 
on the  investment,  and  so  on. 

It  must  be  remembered  that  although  the  additions  to 
the  policy  are  not  accumulated  interest,  they  are  never- 
theless dollars,  which  will  be  paid  to  the  policy-holder 
in  case  of  death.  Hence  it  matters  not  to  him  what  it 
is  or  how  it  is  calculated ;  the  money  will  be  found  when 
due.  It  must  be  borne  in  mind,  too,  that  if  death  occurs 
in  either  of  these  years,  the  heir  of  the  policy-holder  not 
only  gets  what  we  have  called  profits,  but  he  gets  also 
the  amount,  of  policy,  $10,000. 

Considering  the  subject  of  life  policy  in  any  point  of 
view,  and  especially  in  that  of  a  cash  mutual,  where  the 
first  premium  is  the  heaviest  payment,  and  that  they  de- 
crease rapidly  as  the  age  increases,  and  finally  the  pay- 
ments cease  altogether,  and  the  inability,  from  inexperi- 
ence, of  those  having  money  to  manage  it,  the  conclusion 
must  inevitably  result  in  the  minds  of  those  having  expe- 
rience in  investments,  that  it  is  the  best  that  the  largest 
class  of  people  can  make,  independent  of  the  insurance 
itself;  but  when  this  is  taken  into  account  also,  it  is 
surely  strange  that  any  one  who  has  dependants,  and  has 
not  ample  means,  should  fail  to  avail  himself  of  the  ad- 
vantage.    Nothing  but  an  ignorance  of  the  subject  would 

prevent. 

The  quicker,  however,  any  one  can  secure  the  benefits 

of  a  paid-up  policy,  the  better.     Hence,  life  policies  can  be 


306  How  to  make  Money  make  Money, 

paid  for  in  jive  or  ten  annual  payments,  and  the  rates 
have  been  given  heretofore.  Change  of  circumstances 
may  render  payments,  however  small,  difficult  or  impos- 
sible, and  the  insured  would  not  get  the  full  value,  as  he 
would  if  he  continued  the  payments  to  the  end.  The 
Mutual  Life  of  New  York  set  forth  the  following  for  all 
such  policies  : 

i.  The  company  will  purchase  ordinary  life  policies  after  the 
second  year's  premium  has  been  paid,  and  give  therefor  the  equi- 
table cash  value  or  an  equivalent  paid-up  policy.  The  cash  value 
varies  with  the  age  of  the  policy  from  thirty  to  ninety  per  cent,  of 
the  premiums  paid,  averaging  about  sixty-six  per  cent.  The  equiv- 
alent paid-up  policy  always  exceeds  the  total  amount  of  premiums 
paid. 

2.  Life  policies  issued  on  the  ten-payment  plan,  and  all  endow- 
ment policies,  have  a  like  surrender-value  from  the  moment  the  first 
premium  is  paid,  even  if  it  be  only  a  quarterly  premium. 

We  give  an  example  on  next  page  of  the  operation  of 
a  whole  life  policy,  premium  paid  in  ten  yearly  pay- 
ments in  this  company,  on  the  basis  of  dividend  of  1866. 

This  style  vof  life  policy  is  especially  recommended, 
for  many  reasons,  and  if  these  reasons  are  good  for  it, 
they  are  still  better  for  the  payments  in  five  years.  It 
will  be  noticed  that  the  additions  in  the  whole  life  an- 
nual payments  in  twenty-five  years,  are  $12,152.50,  while 
in  this  they  are  $14,741.46,  and  in  the  five  yearly  pay- 
ments would  be  still  more.  For  the  principle  in  all  cases 
holds  good,  that  the  quicker  you  pay  the  more  you  get  in 
value  on  the  policy. 

A  new  feature  has  lately  been  introduced  by  the  Mu- 
tual Life,  on  life  policies,  and  we  can  do  no  better  than 
quote,  on  next  page,  what  they  say  on  that  subject.  It 
is  without  doubt  a  most  beautiful  idea,  and  will  com- 
mend itself  to  those  whose  objects  it  will  forward,  if  not 
consummate,  in  the  best  way. 


And  how  to  Keep  it. 


307 


Ten  Year  Whole  Life  Pblicy  for  $10,000,  issued  at  age  of  35. 
Annual  Premium,  $516.21. 


a    i 

i    S 
■3  „'° 

i 

a 

'  Policy 
ns. 

Date. 

E 
i 

1 

3 

a      3 

ij 

•a  *3 

1 

ft 

a 

3 

a 
1 

hdPh 
I2 

ffj 

Total 
Additions. 

o.2 

"i> 

<  % 

•> 

H 

< 

3  * 

s 

« 

ft 

i 

0 

H 

End  of  1  st 

Year. 

$119  26 

^396  94 

$119  26 

$324  18 

$324  18 

$10,324  18 

2d 

128  57 

387  63 

'$4*28 

132  8S 

353  64 

677  82 

10,677  82 

3i 

138  19 

378  01 

9  14 

147  33 

383  96 

1,061  78 

11,061  78 

4th 

148  28 

367  92 

14  63 

162  91 

4i5  56 

1.477  34 

",477  34 

& 

159  OS 

357 15 

20  79 

179  84 

448  91 

1.926  25 

11,926  25 

6th 

170  89 

345  31 

27  75 

198  64 

485  10 

2.4"  35 

12,4"  35 

Z*£       ' 

183  76 

332  44 

35  62 

219  38 

524  03 

2,935  38 

12,935  38 

8th 

197  81 

318  39 

44  82 

242  63 

566  80 

3,502  18 

13,502  18 

9th 

212  78 

XT3°2-42 

Nothing. 

54  4i 

267  19 

610  42 

4,112  60 

14,112  60 

icth 

228  35* 

66  07 

294  42 

657  47 

4,770  07 

14,770  07 

nth 

159  64 

Nothing. 

78  72 

238  36 

520  33 

5.290  40 

15,290  40 

1 2th 

163  45 

Nothing. 

89  60 

253  05 

539  94 

5  830  34 

15,830  34 

13th 

167  14 

Nothing. 

101  23 

268  37 

559  70 

6,390  04 

16,390  04 

14th 

170  56 

Nothing. 

"3  5i 

284  07 

579  06 

6,969  10 

16,969  10 

15th 

173  59 

Nothing. 

126  27 

299  86 

597  47 

7,566  57 

17,566  57 

16th 

175  9i 

Nothing. 

139  23 

315  14 

613  82 

8,180  39 

18,180  39 

17th 

177  89 

Nothing. 

152  51 

33o  40 

629  18 

8,809  57 

18,809  57 

18th 

180  33 

Nothing 

166  75 

347  08 

646  29 

9,455  86 

19,455  86 

19th 

183  68 

Nothing. 

182  44 

366  12 

666  77 

10,122  63 

20,122  63 

20th 

187  79 

Nothing. 

199  88 

387  67 

690  66 

10,813  29 

20,813  25 

21st 

192  80 

Nothing. 

219  23 

412  03 

718  28 

",53i  55 

2i,53i  57 

22cl 

198  32 

Nothing- 

240  43 

438  75 

748  63 

12,280  20 

22,280  20 

23d 

204  40 

Nothing. 

263  74 

468  14 

782  oS 

13,062  28 

23,062  28 

24th 

211  25 

Nothing 

289  68 

500  93 

819  63 

13,881  91 

23,881  91 

25th 

218  28 

Nothing. 

317  89 

536  17 

859  55 

14,741  46 

24  741  46 

*  The  ten  years  having  expired,  the  premiums  are  paid  up  in  full,  and  the  annual  divi- 
dends may  be  used  either  to  increase  the  amount  insured,  or  as  an  annual  cash  income. 

THE    INSTALMENT   FEATURE. 

To  meet  the  choice  of  such  present  or  future  members  as  may 
prefer  to  have  the  amount  insured  paid  in  instalments  to  their  widows 
or  heirs,  rather  than  in  one  sum,  this  company  is  prepared  to  issue 
policies  covenanting  that  in  lieu  of  the  payment  of  the  policy  and 
additions  thereto  in  one  sum,  an  equitable  amount,  to  be  determined 
by  the  company,  may  be  paid  annually  or  semi-annually  for  any 
specified  number  of  years  (say  from  five  to  twenty-five  years). 

This  form  of  annuity  will  remove  the  anxiety  which  may  exist  in 
the  minds  of  some  policy-holders,  lest  the  future  provision  they 
have  made  for  their  families  should  be  ineffectual  or  transitory  in  its 
duration,  either  through  unsafe  investments,  unwise  expenditure,  01 
other  uncertainties  incidental  to  contingent  trusts. 


308 


How  to  make  Money  make  Money, 


It  is  not  only  free  from  the  ordinary  dangers  of  investment,  but  its 
punctual  and  full  payment  is  secured  by  the  Large  and  Solid  Cash 
Resources  and  good  faith  of  this  institution,  which  thus,  to  a  cer- 
tain extent,  becomes  the  Guardian  or  Trustee  of  the  survivors. 
Hence  the  provision  may  be  considered,  humanly  speaking,  beyond 
any  adverse  contingency. 

All  such  deferred  payments  or  annuities  will  share  equitably  in 
the  profits  or  dividends  of  the  company.  They  will  also,  when 
desired,  be  made  inalienable  by  the  beneficiaries. 

Table 

Showing  the  Practical  Operation  of  the  Instalment  System.  Ex- 
ample, $10,000  in  Ten  Annual  Instalments.  Other  Amounts 
in  same  proportion. 


Interest  on 

balance  re- 

Total  amount  of  each 

Amount  re- 

Amount of 

maining  with  Company. 

Instalment 

Beginning 

maining  with 

Instalment 

of  Year. 

Company. 

paid. 

6  per  cent. 

7  per  cent. 

6  per  cent. 

7  per  cent 

j 

$10,000 

$1,000 

$1,000 

* 
$1,000 

2 

9,000 

I,000 

$540 

$630 

1,540 

1,630 

3 

8,000 

1,000 

480 

560 

1,480 

1,560 

4 

7,000 

1,000 

420 

490 

1,420 

1,490 

5 

6,000 

1,000 

360 

420 

1,360 

1,420 

6 

5,000 

1,000 

300 

350 

1,300 

1,350 

7 

4,000 

1,000 

240 

280 

1,240 

1,280 

8 

3,000 

1,000 

180 

2IO 

I,l8o 

1,210 

9 

2,000 

1,000 

I20 

I40 

1,120 

1,140 

io 

1,000 

1,000 

60 

70 

I,o6o 

1,070 

ENDOWMENT    POLICIES. 


The  next  in  order,  but  by  no  means  the  less  important 
mode  of  effecting  life  insurance,  is  the  endowment 
policy.  By  this  one  can  have  his  life  insured  and  have 
the  amount  of  policy  paid  to  himself  at  any  age  after  ten 
years  intervene.  There  is  not  a  merchant,  trader,  or 
any  one  subject  to  the  misfortunes  of  business,  that 
should  not  have  an  endowment  policy.     It  is  the  best  pos- 


And  how  to  Keep  it. 


309 


Endowments. 

Premiums   Payable  Annually,  and  in  Ten  Annual  Payments,  on 
Assurance  of  $1,000. 


At  Death  or 
40. 

At  Death  or 
45- 

At  Death  or 
5o- 

At  Death  or 
55- 

At  Death  or 
60. 

At  Death  or 
65- 

u 
0 

< 

co 
B 

B 
e  E 

4)  >, 

*& 

s 

1 

i 
I 

1 

§ 
1 

CO 

c 
9 

3 

c 

in 
1 

i 

hhOh 

§ 

1 

4 

a 
gg 

9 

CO 

"3 

1 

tijp 

1 

a 

< 

CO 

a 

4> 

S 
g 

4 

6 

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a 
< 

§ 

B 

Si 

§ 

■SI 

A 

a 

s 

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1 

a 
a 
< 

CO 

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11 

•  c  £ 

H  « 

O* 

5 

1 

1 
1 

-5J 

20 

21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
3' 
32 

33 

34 
35 
36 
37 
38 
39 
40 

$72   82 

74  75 
76  So 
78  95 
8j  23 
83  63 

$42  28! 
45  °4[ 
48  12 
50  56! 
55  44i 
59  85! 
64  89 
70  82! 
77  52| 
85  58! 
95  26 

$65  09 

66  58 

68  16 

69  82 
7i  57 
73  42 
75  36 
77  4i 
79  58 
81  86 
84  28 

$3283 

34  58 
3648 
38  55 
40  83 
43  34 
46  1 1 
49  20 
52  65 
56  55 
60  96 
66  01 
71  $S 
7867 
8673 
9641 

$59  30 

60  56 

61  80 
63  09 
6446 
65  89 
67  41 

69  00 

70  67 
72  44 
74  31 

$26  98 

28  19 

29  49 
3089 
32  39 

34  OI 

35  78 
37  69 
39  79 
42  08 
44  61 

$55  3o 
56  24 

:   57  22 
'   58  26 

i  59  34 

!  60  49 
;  61  69 
1  62  95 

64  27 
i  65  67 

;  67  13 

68  68 

$23  20 

24  10 

25  06 

26  08 

27  17 

28  32 

29  56 

30  88 

32  31 

33  84 
35  49 
0-7  ?s 

$52  48.  $20  73 

53  26;  2i  45, 

54  08  22  20 

54  93  23  00 

55  83  23  84: 
i  56  77J  24  73 

57  75,  25  67 

58  78  26  66 

59  87;  27  72 
[  61  00  28  84 

62  20  30  04 
1  63  45!  3'  32i 
1  64  77;  32  68 

66  15!  34  15I 
1  67  6x1  35  73 

69  13  37  43, 

!  70  75  39  28: 

,  72  44  41  28; 

74  23  43  47 

j  76  11 1  45  86, 

1  78  10,  48  49! 

80  21 1  51  39, 

,  82  44  54  62 

84  80  58  22 

87  32j  62  27 

$50  68:$i9  14 
5i  39  '9  75 
52  07:  20  38 

52  81]  21  05 

53  58  21  74 

54  39  22  47 

55  24  23  23 

56  13  24  04 

57  06:  24  89 

58  03  25  78 

59  °5  26  72 

60  12  27  72 

61  24  28  77 

62  41  29  89 

63  64  31  08 
i  64  94  32  35 
!  66  29  33  70 
I  67  72  35  15 

69  21  36  70 

70  79  38  37 
72  44  40  '7 
74  19  42  12 

78  34  50  51 
80  53,  53  98 

82  85 !  *»  80 

70  30  39  23 

72  oij  41  35 

1  73  82!  43  6S 

|  75  72  46  24 

|  77  73 [  49  °6 

79  85.  52  21 

85  30 

62  32 
67  39 
73  25 
80  08 
88  16 
97  87 

1  84  47 
86  98 

59  67 
64  i5 
69  27 
75  18 
82  07 
90  22 
100  00 

42 
43 
44 
45 
46 
47 
48 
49 
50 
5i 

52 

53 
54 
55 

46  5  5 

;  80  05 
1  82  24 
84  57 
87  05 
89  70 
92  52 
95  54 

49  08 
51  85 
54  91 
58  30 

62  oS 

72  10 
78  13 

85  is 

93  43 
103  32 

66  30 
71  06 
7646 
82  65 

89  8j 
98  26 
108  31 

3  i  o  How  to  make  Money  make  Money, 

sible  way  of  investing  and  saving  profits.  Taken  out  in 
the  name  of  the  wife,  no  creditor  can  touch  it,  under 
certain  restrictions  named  hereafter ;  and  while  it  is  a 
safe,  swift,  and  sure  way  to  accumulate,  its  benefits  may 
come  at  a  time  when  money  will  be  sweet.  As  has  been 
said  before,  take  ten  per  cent,  of  your  profits  and  invest 
them  in  an  endowment  policy,  and  you  will  never  see  the 
day  you  will  regret  it ;  and  you  will  undoubtedly  see  the 
time  that  you  will  be  truly  thankful,  whether  you  are 
unfortunate  or  not,  that  some  one  has  told  you  of  such  a 
plan  of  accumulating  and  saving. 

The  preceding  table  gives  the  rates  of  the  Mutual 
Life  Insurance  of  New  York. 

We  give  what  the  Company  says  of  this  species  of  Life 
Insurance  : — 

ENDOWMENTS. 

We  solicit  from  the  reader  a  careful  consideration  of  this  system. 
An  endowment  policy  is  a  double  contract,  by  which  the  company 
agrees  to  pay  a  certain  sum  to  the  person  insured  at  a  specified  age, 
with  the  promise  that  if  he  dies  before  attaining  that  age,  the  sum 
named  in  the  policy  shall  be  paid  at  once.  The  plan  combines  the 
advantages  of  a  life  insurance,  a  savings  bank,  and  safe  invest- 
ment. It  is  simply  an  annual  deposit  of  funds,  to  be  repaid  to  the 
depositor  with  a  fair  rate  of  interest  at  a  specified  time.  It  is  believed 
to  be  better  than  a  deposit  in  a  savings  bank,  because  no  creditor 
can  reach  a  wife's  policy,  and  also  because  if  the  assured  should 
die  after  having  made  only  one  payment  of  premium,  his  heirs  would 
be  entitled  to  the  full  sum  insured.  The  system  commends  itself 
to  wealthy  men,  and  also  to  persons  living  upon  a  stated  income,  the 
result  of  personal  labor. 

This  is  a  peculiar  feature  with  this  company,  as  no  other  com- 
panies can  present  the  security  we  offer,  or  the  profits  which  we  are 
enabled  to  divide,  so  as  to  make  the  investment  a  good  one  to  the 
applicant  ;  and  the  rates  for  such  policies  are  from  10  to  30  per  cent, 
lower  than  those  charged  by  other  and  smaller  institutions. 

The  following  endowment  policies  have  been  paid  to  the  owners, 
and  it  will  be  seen  that  they  received  a  surplus  above  all  they  had 
paid  to  the  company,  with  compound  interest  at  six  per  cent.,  and 
no  charge  whatever  for  expenses  or  cost  of  insurance  meanwhile. 


And  how  to  Keep  it. 


311 


Endowment   Assurances. 

All  the  Policies  of  this  Class  which  have  matured  thus  far,  are 
included  in  the  following  list. 


• 
Number 

Date 

Amount 

Annual 
Premium. 

When 
raid. 

Amount 

of 

of 

of 

Description. 

paid  by  the 

Policy. 

Issue. 

Policy. 

Company. 

I7826 

1857 

$5,000 

$576  80 

Death  or  60 

1865 

$6,634  OI 

18905 

u 

2,000 

253  74 

55 

u 

2,662   80 

19949 

1858 

5,000 

622  87 

50 

u 

6,602    59 

18538 

I8S7 

2,000 

223  88 

55 

1866 

2,705   07 

1 899 1 

u 

2,500 

274  33 

50 

u 

3,354  38 

18992 

il 

2,500 

274  33 

50 

u 

3,467  81 

I8IS3 

a 

5,000 

54i  30 

45 

6,711  97 

Let  any  merchant  or  trader  but  read  the  statistics 
given  heretofore  of  successes  and  failures  in  business 
and  consider  whether  it  is  not  wise  for  himself,  and  espe- 
cially if  he  has  dependants  upon  him,  to  set  aside  a  por- 
tion of  his  profits  in  this  way,  to  guard  against  a  day  of 
misfortune.  Is  it  wise  to  risk  all  in  business,  when  you 
know  yourself  that  things  may  occur  beyond  your  control 
that  will  sweep  away  all  your  earnings  ?  Men  cannot 
control  events.  There  may  be  accidents  or  changes  that 
will  come  upon  the  most  prudent  and  far-seeing.  Then 
anchor  a  little  while  you  can  ;  for  even  in  this  enterprise, 
if  you  become  unable  to  pay  your  premiums  for  the 
whole  time,  you  will  not  lose  what  you  have  paid,  for  the 
company,  by  an  equitable  scale,  will  pay  you  an  equitable 
amount.     We  quote  what  they  say  on  this  subject : 


ENDOWMENTS. ON  THE  TEN  YEAR  PLAN. 

Payments  cease  entirely  at  the  end  of  ten  years  ;  with 
the  privilege  of  surrendering  before  the  expiration  of  the  ten  years, 


312 


How  to  make  Money  make  Money, 


and  taking  a  policy  for  the  proportionate  amount.  If  the  holder  of  a 
policy  for  $10,000  on  this  plan  should  desire  to  discontinue  the  pay- 
ments of  premiums  before  the  end  of  the  ten  years,  the  company 
will  give,  on  the  surrender  of  the  original  policy,  a  similar  endow- 
ment assurance  policy  paid  up  in  full,  which, 

If  at  the  end  of  two  years,  shall  exceed $2,000 

"  "        three         "        "  3,000 

"  ".       four  "        "  4,000 

"  "        five  "        "  5,000 

"  "        six  "  6,000 

"  "        seven        "        "  7,000 

"  "        eight         "        "  8,000 

"  "         nine  "         "  9,000 

This  plan  of  paying  for  a  policy  by  a  definite  number  of  annual 
instalments  must  commend  itself  to  every  thoughtful  man,  as  it  obvi- 
ates one  of  the  greatest  objections  to  life  insurance,  namely,  the 
uncertainty  of  being  able  to  continue  the  customary  payments  of 
premiums  during  the  later  years  of  life. 

We  give  the  practical  working  of  a  Ten  Year  payment 
endowment  policy,  and  one  in  which  the  premiums  are 

"  Ten  Year  "  Endowment  Assurance  Policy  for  $10,000,  issued  at 
age  of  35,  payable  at  Death  or  at  60  years  of  age.     Annual 
•   Premium,  $691.30. 


S3 

ft 

| 

« 

M& 

^s 

-      3 

Date. 

•n  0 
§  3, 

.2     3r3 

c  <u  a 

*o.2 

h 

3  j 

§2 

1:1 

fc  a 

II 
P 

■3.J 

If 

< 

23 
0 

H 

0      5 

End  of  1  st 

Year. 

$185  32 

$505  98 

*i8s  32 

$399  66 

$399  66 

$10,399  66 

2d 

198  99 

492  31 

$625 

205  24 

430  91 

830  57 

10.830  57 

3d 

212  92 

478  38 

13  30 

226  22 

462  20 

1,292  77 

11,292  77 

4th 

227  34 

463  96 

21  18 

248  52 

493  9° 

1,786  67 

11,786  67 

5th 

243  38 

447  92 

29  96 

273  34 

528  16 

2,314  83 

12,314  83 

6th 

258  39 

432  91 

39  82 

29S  21 

560  00 

2,874  83 

12,874  83 

7th 

275  3i 

4i5  99 

5i  09 

326  40 

595  46 

3,47°  29 

13,470  29 

8th 

293  05 

398    2S 

63  02 

356  07 

630  74 

4.101  03 

14,101  03 

9th 

311  91 

379.39* 
Nothing. 

76  81 

388  72 

663  37 

4,769  40 

14,769  40 

10th 

33o  67 

91  77 

422  44 

704  74 

5,474  H 

15.474  H 

nth 

197  92 

Nothing. 

108  34 

306  26 

495  52 

5,969  66 

15,969  66 

15th 

219  78 

Nothing. 

165  71 

385  49 

549  5i 

8.088  62 

18,088  62 

16th 

224  95 

Nothing. 

181  99 

406  94 

501  44 

8,650  06 

18,650  06 

20th 

249  49 

Nothing. 

259  67 

509  16 

613  27 

11,020  78 

21,020  78 

2ZSt 

257  10 

Nothing. 

283  34 

540  44 

628  27 

11,649  05 

21.649  05 

24th 

280  86  , 

Nothing. 

362  88 

643  74 

669  48 

13,617  92 

23,617  92 

25th 

288  45 

Nothing 

39i  97 

680  42 

680  42 

14,298  34 

24,298  34 

*  The  ten  years  having  expired,  the  premiums  are  paid  up  in  full,  and  the  annual  divi- 
dends may  be  used  either  to  increase  the  amount  insured,  or  as  an  annual  cash  income. 


And  how  to  Keep  it. 


313 


paid  during  its  time  in  the  Mutual  Life  Insurance  Com- 
pany of  New  York,  upon  the  basis  of  dividend  of  1866. 

Endowment  Assurance  Policy  for  $10,000,  issued  at  age  of  35 
years,  payable  at  Death  or  at  60  years  of  age.  Annual  Pre- 
mium, $374-30- 


tap 

a 

§'<S  . 

| 

H 

0  0 

O 

+*    (3 

Date. 

T3   O 

3  »rJ3 

*  S 

•0.2 

h 

><4J 

U 

1  J 

ill 

fcjj 

3:l 

H 

""I 

*3 

a 
0 

^  a1 

Q 

H 

< 

8 

0  5 

End  of  1st 

Year. 

$102  07 

$272  23 

$102  07 

$220  12 

$220  12 

$10,220  12 

2d 

108  93 

265  37 

$3  44 

112  37 

23s  93 

456  05 

10,456  05 

3<L 

US  70 

258  60 

7  30 

123  00 

251 31 

707  36 

10,707  36 

4th 

122  63 

251  67 

"  59 

134  22 

266  75 

974  " 

10.974  11 

£l£ 

129  83 

244  47 

16  34 

146  17 

282  44 

1,256  55 

11,256  55 

6th 

137  86 

236  44 

21  61 

159  47 

299  47 

1,556  02 

11,556  02 

7th 

8th 

146  18 

228  12 

27  65 

173  83 

317 12 

1,873  14 

11,873  14 

155  3o 

219  00 

34  02 

189  32 

335  37 

2,20S  51 

12,208  51 

9th 

165  32 

208  98 

41  37 

206  69 

355  39 

2,563  90 

12,563  90 

10th 

174  90 

199  40 

49  33 

224  23 

374  07 

2,937  97 

12,937  97 

15th 

224  78 

149  52 

101  57 

326  35 

46s  22 

5,087  02 

15,087  02 

16th 

234  20 

140  10 

114  46 

348  66 

481 02 

5,568  04 

15,56s  04 

20th 

279  02 

95  28 

177  35 

456  37 

549  69 

7,657  97 

17,657  97 

21st 

292  85 

81  45 

196  88 

489  73 

569  33 

8,227  30 

18,227  30 

25th 

350  00 

24  30 

289  89 

639  89 

639  89 

10,688  11 

20,688  11 

We  give  also  an  endowment  table  for  children,  by 
which  it  is  claimed  a  fund  can  be  provided  for  their  col- 
legiate education,  or  for  the  purposes  of  support.  In  very 
many  cases  this  might  not  only  be  useful,  but  necessary. 

We  cannot  see  the  benefit  of  such  endowments  as 
compared  with  a  deposit  in  savings  banks,  and  certainly 
not  as  compared  with  life  endowment  policies.  We 
cannot  see  the  benefit  of  any  plan  of  life  insurance  or 
endowments  where  the  earnings  may  be  lost  at  a  time 
when  they  are  the  most  needed.  It  would  be  far  better 
where  no  life  policy  exists,  to  deposit  in  savings  bank, 
where  the  earnings  would  be  at  command  when  money 
is  sweet  to  alleviate  distress,  and  cover  the  achings  of 
poverty. 


3H 


How  to  make  Money  make  Money, 


Children's   Endowment   Table. 
Annual  Premiums  charged  to  secure  Endowments  of  $1,000. 


Payable  at  the  age  of  18. 

Payable  at  the  age  of  21. 

Payable  at  the  age  of  25 

o 

< 

No  pre- 

All Pre- 

No Pre- 

All Pre- 

No Pre- 

All Pre- 

h 

miums  re- 

miums ie- 

miums  re- 

miums re- 

miums re- 

miums re- 

z 

turned  in 

turned  in 

turned  in 

turned  in 

turned  in 

turned  in 

w 

w 

case  of  pre- 

case of  pre- 

case of  pre- 

case of  pre- 

case of  pre- 

case of  pre- 

vious Death. 

vious  Death. 

vious  Death. 

vious  Death. 

vious  Death. 

vious  Death. 

I 

$4°  38 

$4678 

$31  80 

$37  16 

$23  85 

$28  21 

2 

44  77 

50  3° 

34  90 

39  64 

25  93 

29  89 

3 

49  52 

54  44 

38  18 

,42  52 

28  09 

31  81 

4 

54  75 

59  32 

41  71 

45  86 

3°  36 

33  99 

5 

60  68 

65  06 

45  60 

49  67 

32  82 

36  44 

b 

67  50 

7i  85 

49  97 

54  07 

35  5° 

39  18 

7 

75  52 

79  94 

54  93 

59  13 

38  47 

42  27 

8 

85  13 

8969 

60  65 

65  01 

4i  79 

45  74 

9 

9687 

10 1  66 

67  33 

71  90 

45  54 

49  66 

IO 

in  58 

116  66 

75  24 

80  07 

4980 

54  13 

ii 

130  53 

135  96 

8478 

89  88 

54  7° 

59  24 

12 

155  88 

161  71 

96  49 

101  89 

60  39 

65  15 

13 

191  45 

197  78 

in  18 

116  91 

67  06 

72  06 

14 

244  93 

251  89 

130  13 

136  22 

74  99 

80  22 

*s 

155  49 

161  97 

84  55 

90  03 

16 

191   10 

198  02 

96  30 

102  01 

*7 

244  64 

252  09 

in  03 

117  00 

18 

130  03 

136  29 

We  subjoin  the  following  information  for  such  as  might 
be  induced  to  consider  the  subject  of  life  insurance  favor- 
ably, as  being  interesting  to  them.  We  take  it  from  the 
yearly  report  of  the  Mutual  Life. 


SURRENDER    OF    POLICIES. 

Should  the  original  motive  for  effecting  an  assurance  in  this 
company  cease  before  the  termination  of  life,  the  party  may  sur- 
render his  policy,  provided  it  has  run  two  years,  for  an  equitable 
consideration,  which  may  be  paid  to  him  in  cash  by  the  company 
on  its  surrender.  Or,  if  it  is  found  inconvenient  to  continue  the 
payment  of  the  annual  premium,  the  company  will  grant  a  new 
policy,  which,  without  further  payment,  will  assure  to  the  represen- 
tatives of  the  party,  at  his  death,  a  reversionary  sum  equivalent  to 
the  present  value  of  the  policy  on  surrender. 


And  how  to  Keep  it.  315 


SPECIAL    NOTICE. 

The  following  rules  and  usages  of  the  company  established  by  the 
board,  and  governing  it  in  its  transactions  with  its  agents  and  the 
insured,  are  published  for  the  guidance  and  information  of  policy- 
holders. 

The  agreement  is  mutual,  as  expressly  stipulated  in  the  application 
and  the  policy,  that  unless  the  premium  is  paid  on  or  before  the  day 
it  becomes  due,  the  policy  is  forfeited  and  void. 

All  premiums  are  due  and  payable  at  the  office  of  the  company,  in 
the  city  of  New  York,  but  for  the  convenience  of  policy-holders 
residing  at  a  distance,  they  may  be  paid  to  an  agent,  but  only  on  the 
production  of  a  receipt  signed  by  the  President  or  Secretary,  who  are 
alone  authorized  to  sign  receipts  on  the  part  of  the  company.  When 
receipts  are  delivered  to  a  policy-holder  by  an  agent,  such  agent 
should  countersign  the  same  as  an  evidence  of  payment  to  him. 

Agents  are  not  authorized  to  receive  any  premium,  on  the  part  of 
the  company,  unless  they  shall  have  been  furnished  with  a  receipt 
therefor,  signed  by  the  President  or  Secretary,  as  no  payment  made 
to  an  agent,  without  such  receipt  being  given  in  return  by  him,  is 
considered  valid  by  the  company. 

Should  any  policy-holder  tender  payment  of  a  premium  to  an 
agent,  for  which  no  receipt  has  been  furnished,  the  following  con- 
ditional receipt  may  be  given  by  the  agent,  and  no  other : 

"  Conditional  Receipt. 

Received,  ,  186  ,   from 

,  $  ,  stated  to  be  the  amount 

of  a  premium   due   this   day  on   Policy  No.         ,  issued  by  the 
Mutual  Life  Insurance  Company  of  New  York,  upon  the  life  of 
,  for  the  sum  of  $  ,  and  in  favor  of 

.  Said  alleged  premium  is  to  be  held  by  the 
undersigned  until  application  can  be  made  to  the  company  to  accept 
the  same  and  forward  their  receipt.  If  such  receipt  be  forwarded, 
this  conditional  receipt  is  to  be  exchanged  therefor  ;  if  the  com- 
pany's receipt  be  not  forwarded,  the  money  is  to  be  returned,  and 
this  conditional  receipt  cancelled. 

(Signed)  J.  D.,  Agent." 

Agents  are  not  authorized  to  make,  alter,  or  discharge  contracts, 
waive  forfeitures,  name  an  extra  rate  for  special  risks,  or  bind  the 
company  in  any  way,  their  duties  being  simply  the  reception  and 
transmission  of  applications  for  policies  and  premiums  under  the 
rules  and  instructions  laid  down  in  their  letters  of  appointment. 

The  company  may,  but  solely  as  an  act  of  grace  or  courtesy,  and 
when  the  interests  of  the  company  will  not  be  impaired  in  any  way 
thereby,  restore  a  forfeited  policy.  WJien  a  restoration  is  applied 
for,  the  application  must  invariably  be  accompanied  by  a  certificate 


316  How  to  make  Money  make  Money, 

as  to  the  health  of  the  person  whose  life  was  insured,  and  at  his 
expense,  from  a  physician  acceptable  to  the  company.  The  agent 
forwarding  such  application  will  be  then  notified  of  the  decision 
made  in  the  case. 

In  all  cases  of  restorations  of  forfeited  policies,  and  in  all  cases 
where  the  premium  is  received  after  the  day  on  which  it  became  due, 
although  the  policy  may  not  have  been  formally  cancelled  on  the 
company's  books,  the  renewal  or  revival  of  the  policy,  in  whatever 
form  made,  will  be,  in  accordance  with  the  decision  of  the  Commis- 
sioners of  Internal  Revenue,  subject  to  stamp  tax  the  same  as  if  a 
new  policy  had  been  issued. 

Agents  of  the  company  are  not,  under  any  circumstances,  author- 
ized to  indorse  the  receipt  of  premiums  on  the  policy. 

Should  the  policy-holder  so  desire,  the  agent  will  send  the  policy 
and  all' previous  receipts  to  this  company,  and  the  premiums  will 
then  be  entered  upon  it  by  the  President  or  Secretary,  and  the  policy 
returned. 

It  is  entirely  optional  with  the  policy-holder  to  communicate 
directly  with  the  company  or  through  an  agent.  If  he  should  elect 
the  latter  method,  such  agent  in  all  communications  and  payments 
acts  as  his  representative. 

AN  ACT  FOR  THE  BENEFIT  OF  MARRIED  WOMEN  IN  INSURING 
THE  LIVES  OF  THEIR  HUSBANDS.       PASSED  MARCH,  1 85 8. 

The  People  of  the  State  of  New  York,  represented  in  Senate  and 
Assembly,  do  enacl  as  follows  : 

§  1.  It  shall  be  lawful  for  any  married  woman,  by  herself,  and  in 
her  name,  or  in  the  name  of  any  third  person,  with  his  assent,  as  her 
trustee,  to  cause  to  be  insured,  for  her  sole  use,  the  life  of  her  hus- 
band, for  any  definite  period,  or  for  the  term  of  his  natural  life  ;  and 
in  case  of  her  surviving  her  husband,  the  sum  or  net  amount  of  the 
insurance  becoming  due  and  payable  by  the  terms  of  the  insurance, 
shall  be  payable  to  her,  to  and  for  her  own  use,  free  from  the 
claims  of  the  representatives  of  the  husband,  or  of  any  of  his  cred- 
itors ;  but  such  exemption  shall  not  apply  where  the  amount  of 
premium  annually  paid  out  of  the  funds  or  property  of  the  husband 
shall  exceed  three  hundred  dollars. 

§  2.  In  case  of  the  death  of  the  wife  before  the  decease  of  her 
husband,  the  amount  of  the  insurance  may  be  made  payable  after 
death  to  her  children,  for  their  use,  and  to  their  guardian,  if  under 
age.  ' 

The  author  of  this  work  has  some  explanation  to  make 
to  his  readers  why  he  has  spoken  of  the  Mutual  Life  of 
New  York  instead  of  other  companies  who  may  be  as 
good  and  insure  on  as  favorable  or  more  favorable  terms 


A  /id  how  to  Keep  it.  317 

than  they.  He  would  say  that  he  has  not,  directly  or  in- 
directly, any  interest  in  any  life  company  in  the  world, 
because  he  is  fortunate  enough,  at  present,  not  to  need 
their  aid  in  the  way  of  insurance.  He  happens  to  know 
the  officers  of  the  company,  and  believes  they  are  all 
entirely  trustworthy,  and  also  knows  that  it  has  been  the 
most  successful  mutual  company  in  the  world.  He 
therefore  has  felt  himself  bound,  in  a  conscientious  dis- 
charge of  duty  to  his  readers,  to  say  what  he  has 
without  disparagement  to  any  one  else. 


Annuities. 

We  give  tables  of  rates  of.  what  are  called  survivor- 
ship annuities,  and  annuities  on  a  single  life.  It  will  be 
seen  that  the  survivorship  annuities  are  intended  to  bene- 
fit one  person  only.  For  this  single  object;  it  will  be  seen  to 
be  the  cheapest,  most  effective,  and  indeed  the  only  method 
of  securing  a  definite,  certain,  and  permanent  support  to  a 
surviving  wife  or  nominee.  We  give  what  the  Mutual 
Life  says  of  these  policies. 


By  this  plan  a  husband  may  secure  to  his  widow  the  payment  (in 
annual,  or,  if  preferred,  in  semi-annual  or  quarterly  instalments  with- 
out  extra  charge)  of  an  annuity  sufficient  to  maintain  her  in  comfort 
and  independence  during  the  remainder  of  her  life.  This  provision 
is  not  only  free  from  the  ordinary  dangers  of  investment  and  of 
dependence  upon  designing  or  inexperienced  persons  ;  but  its  punc- 
tual and  full  payment  is  secured  upon  the  promises,  large  resources, 
and  good  faith  of  this  institution,  which  thus,  to  a  certain  extent, 
becomes  the  guardian  or  trustee  of  the  survivor :  and  hence  the 
provision  may  be  considered,  humanly  speaking,  beyond  any  adverse 
contingency. 

In  the  same  manner,  a  parent,  sister,  or  child  may,  by  such  a 
provision,  be  made  independent  both  of  friends  and  of  chanty,  when 
their  natural  protector  shall  have  been  removed  by  death. 

Although  a  survivorship  annuity  is  intended  for  the  benefit  of  one 


3 1 8  How  to  make  Money  make  Money, 

person  exclusively,  yet  a  family  may  be  provided  for,  and  more 
economically  than  by  any  other  method,  by  taking  a  policy  for  each 
person  separately,  with  the  additional  advantage  of  being  able  to 
modify  the  annuity  to  suit  each  individual  case. 

In  addition,  rates  of  premium  are  given  in  the  tables  on  the  fol- 
lowing pages,  by  which,  in  case  the  nominee  or  person  for  whom  the 
benefit  was  intended  should  diefirs^  all  payments  made  to  the  Com- 
pany will  be  returned  to  the  insurer.  This  feature  is  especially 
recommended. 

The  premiums  on  these  policies  m,ay  be  paid  annually,  semi- 
annually, or  quarterly,  or  by  a  single  payment. 

Annuities  for  a  single  life  are  not  likely  to  be  very 
popular  in  this  country,  where  investments  in  large  sums 
can  be  made  in  real  estate,  bonds  and  mortgages,  State 
and  United  States  bonds,  and  bank  stocks,  at  seven  pei 
cent.,  while  the  annuities  are  calculated  in  the  best  com- 
panies on  a  basis  of  only  four  per  cent.  The  companies 
could  undoubtedly  do  better  than  this  if  there  was  a  cer- 
tainty of  money  remaining  at  present  interest  for  a  long 
series  of  years.  It  would  not  be  prudent,  however,  to 
make  such  calculations,  as  money  over  the  water,  on  the 
average,  does  not  command  as  much  as  this.  Persons, 
however,  might  find  annuities  in  this  country  on  that 
basis  of  interest  advantageous,  and  especially  so  if  they 
were  of  strong  constitutions,  and  belonged  to  a  lineage 
of  great  longevity. 

Any  one  can  understand  the  survivorship  annuity 
tables  on  inspection,  as  they  explain  themselves.  For 
the  annuity  tables  on  a  single  life,  we  will  give  an 
example.  Suppose  you  wish  to  find  the  rate  on  a  single 
life  at  40  years,  on  a  basis  of  interest  of  6  per  cent. 
Opposite  40  years,  and  under  the  line  of  six  per  cent., 
you  will  find  you  must  pay  #12.002  for  one  dollar  of 
yearly  income. 


And  how  to  Keep  it. 


319 


Annual  Premiums  necessary  to  secure  a  Survivorship  Am  ujty  of 
$100.  When  the  Nominee  is  older  than  the  Life  Insured, 
without  return  of  Premiums  Paid,  in  case  the  Nominee  dies 
first. 


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320 


How  to  make  Money  make  Money, 


Annual  Premiums  necessary  to  secure  a  Survivorship  Annuity  of 
$100.  Where  the  Nominee,  or  Person  for  whom  the  Annuity 
is  intended,  is  younger  than  the  Life  Insured,  without  return 
of  Premiums  Paid,  in  case  the  Nominee  dies  first. 


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26  54 

27  02 

29  28 

30 

22  30 

22  82 

23  35 

23  87 

24  40 

24  92 

25  43 

25  95 

26  46 

26  96 

27  46 

29  83 

31  97 

31 

22  53 

23  08 

23  63 

24  17 

24  72 

25  27 

25  81 

26  35 

26  88 

27  4i 

27  93 

30  42 

32  67 

32 

22  78 

23  35 

23  92 

24  50 

25  07 

25  64 

26  21 

26  77 

27  33 

27  88 

28  43 

31  05 

33  41 

33 

23  04 

23  64 

24  24 

24  84 

25  44 

26  04 

26  63 

27  22 

27  81 

28  39 

28  96 

3i  71 

34  19 

34 

23  32 

23  95 

24  58 

25  20 

25  83 

26  46 

27  08 

27  70 

28  31 

28  92 

29  53 

32  41 

35  02 

35 

23  63 

24  28 

24  94 

25  59 

26  25 

26  91 

27  56 

28  21 

28  85 

29  49 

30  12 

33  16 

35  90 

38  32 

36 

23  95 

24  64 

25  33 

26  01 

26  70 

27  39 

28  07 

28  75 

29  43 

30  10 

30  76 

33  95 

36  84 

39  39 

37 

24  3° 

25  02 

25  74 

26  46 

27  18 

27  90 

28  62 

29  33 

30  04 

3o  74 

31  44 

34  79 

37  84 

40  52 

3* 

24  68 

25  43 

26  18 

26  93 

27  69 

28  44 

29  20 

29  95 

30  69 

3i  43 

32  16 

35  69 

38  89 

41  72 

39 

25  08 

25  86 

26  65 

27  44 

28  23 

29  02 

29  81 

30  60 

3i  38 

32  16 

32  93 

36  64 

40  02 

43  00 

4° 

25  Si 

26  33 

27  i5 

27  98 

28  81 

29  64 

30  47 

3i  30 

32  12 

32  94 

33  75 

37  65 

41  21 

44  36 

4i 

25  97 

26  82 

27  69 

28  56 

29  43 

30  30 

3i  17 

32  04 

32  90 

33  76 

34  6i 

38  72 

42  48 

45  80 

42 

26  46 

27  36 

28  26 

29  17 

30  09 

31 00 

3i  92 

32  83 

33  74 

34  64 

35  54 

39  87 

43  83 

47  34 

43 

26  99 

27  93 

28  88 

29  83 

3o  79 

31 75 

32  71 

33  67 

34  63 

35  58 

36  52 

41  09 

45  27 

48  98 

44 

27  55 

28  54 

29  53 

30  54 

3i  54 

32  55 

33  56 

34  57 

35  58 

36  58 

37  58 

42  39 

46  81 

50  73 

45 

28  16 

29  19 

30  24 

31  29 

32  35 

33  41 

34  47 

35  53 

36  59 

37  64 

38  69 

43  77 

48  44 

52  59 

46 

28  81 

29  89 

3°  99 

32  09 

33  20 

34  32 

35  43 

36  55 

37  67 

38  72 

39  88 

45  24 

50  18 

54  57 

47, 

29  5o 

3°  63 

3i  78 

32  94 

34  » 

35  28 

36  46 

37  64 

38  81 

39  98 

41  15 

46  81 

52  04 

56  69 

48 

30  23 

3i  43 

32  63 

33  85 

35  08 

36  31 

37  55 

38  79 

40  03 

41  26 

42  49 

48  47 

54  °° 

58  94 

49 

31  02 

32  27 

33  53 

34  81 

36  10 

37  40 

38  70 

40  01 

4i  32 

42  62 

43  92 

50  24 

56  10 

61  33 

50 

3i  84 

33  16 

34  48 

35  83 

37  28 

38  55 

39  92 

41  3o 

42  68 

44  05 

45  42 

52  11 

58  32 

63  88 

5i 

32  71 

34  09 

35  48 

36  90 

38  32 

39  76 

41  21 

42  66 

44  n 

45  56 

47  00 

54  08 

60  67 

66  58 

52 

33  62 

35  07 

36  54 

38  02 

39  52 

41  °3 

42  56 

44  09 

45  62 

47  15 

48  68 

56  17 

63  16 

69  44 

53 

34  58 

36  10 

37  64 

39  20 

40  77 

42  37 

43  97 

45  58 

47  2° 

48  82 

50  44 

58  37 

65  80 

72  47 

54 

35  58 

37  17 

38  79 

40  43 

42  09 

43  77 

45  46 

47  16 

48  87 

50  58 

52  28 

60  69 

68  58 

75  68 

55 

36  62 

38  29 

39  99 

41  72 

43  46 

45  23 

47  01 

48  81 

50  61 

52  42 

54  22 

63  13 

7i  5i 

79  °9 

56 

37  71 

39  46 

4i  25 

43  06 

44  9° 

46  76 

4864 

50  53 

52  43 

54  34 

56  25 

65  69 

74  00 

82  69 

57 

38  83 

40  67 

42  55 

44  46 

46  39 

48  35 

50  33 

52  33 

54  34 

56  36 

58  38 

68  39 

77  88 

86  49 

53 

39  99 

4i  93 

43  90 

45  9i 

47  95 

50  01 

52  10 

54  2i 

56  33 

58  46 

60  60 

71  22 

81  33 

90  52 

59 

41  20 

43  23 

45  30 

47  4i 

49  56 

51 74 

53  94 

56  16 

5841 

60  66 

62  92 

74  19 

84  95 

94  77 

60 

42  44 

44  57 

46  75 

48  97 

51  23 

53  53 

55  85 

58  20 

60  56 

62  95  j 

65  34 

77  30 

8877 

99  27 

And  how  to  Keep, it. 


321 


Value  of  Annuities  on  a  Single  Life. 

Calculated  on  a  basis  of  4,  5,  6,  7,  8,  9,  ana  10  per  cent.    (Carlisle 
Table  of  Mortality.) 


Age. 

4  per  cent. 

5  per  cent. 

6  per  cent. 

7  per  cent 

8  per  cent. 

9  per  cent. 

10  per  ct 

■     t 

$16,554 

$13,995 

$12,078 

$10,605 

$9,439 

$8,502 

$7,732 

2 

17,726 

14,983 

12,925 

",342 

10,088 

9,080 

8.251 

3 

18.715 

15,824 

13,652 

11,978 

10,651 

9,584 

8,705 

4 

19,331 

16,271 

14,042 

12,322 

10,957 

9,858 

8,954 

5 

19,592 

16,590 

14,325 

12,574 

11,184 

10,064 

9,i4i 

6 

19,745 

16,735 

14,460 

12,698 

11,298 

10,168 

•   9,237 

I 

19,790 

16,790 

14,518 

12.756 

",354 

10,221 

•    9.28<7 

9-306 

19,764 

16,786 

14,526 

12,770 

",37i 

10.240 

9 

19,691 

16,742 

14,500 

12,754 

11,362 

10,236 

9,304 

10 

19,583 

16,669 

14,448 

12,717 

",334 

10,214 

9,286 

11 

19,458 

16,581 

14,384 

12,669 

11,296 

10,183 

9,261 

12 

19,334 

16,494 

14,321 

12,621 

11259 

10,153 

N     9,238 

13 

19,209 

16,406 

14,257 

12,572 

11,221 

10.123 

9,213 

H 

19,081 

16,316 

14,191 

12,522 

11,182 

10,091 

9,187 

IS 

i8,995 

16,227 

14,126 

12,473 

11,144 

10,061 

9.161 

16 

18,836 

16,144 

14,067 

12,429 

11,111 

10,034 

9,140 

17 

18,721 

16,066 

14,012 

12,389 

11,081 

10,011 

9,122 

»8. 

18,606 

15,987 

13,956 

12,348 

11,051 

9,988 

9,104 

19 

18,486 

15.904 

13,897 

12,305 

11,019 

9,963 

9.085 

20 

18.361 

15,817 

13,835 

12,259 

10.985 

9,937 

9,064 

21 

18,231 

15,726 

13,769 

12,210 

10,948 

9,909 

9.041 

22 

18,093 

15,628 

13,697 

12,156 

10,906 

9,876 

9,015 

23 

i7,95o 

15,525 

13,621 

12098 

10,861 

9,841 

8,987 

24 

17,800 

I5,4i7 

13.541 

12,037 

10,813 

9,802 

8,955 

25 

17,644 

15-303 

13,456 

11,972 

10,762 

9,761 

8,921 

26 

17,485 

15,187 

13,368 

11,904 

10,709 

9,718 

8,886 

27 

17,320 

15,065 

13,275 

11,832 

1      10,652 

9,671 

8,847 

28 

i7,i54 

M,942 

13,182 

",759 

10.594 

9,624 

8,808 

29 

16,996 
16,852 

14,827 

13,096 

",693 

10,542 

9,582 

8,773 

30 

14,723 

13,020 

11,636 

10,498 

9,548 

8,747 

3i 

16,705 

14.617 

12,942 

",578 

10,454 

9,5M 

8,719 

32 

16.552 

14,506 

12,860 

11,516 

10,407 

9,476 

8,690 

33 

16,390 

14387 

12,771 

",448 

IO-355 

9,435 

8,657 

34 

16,219 

14,260 

12,675 

">374 

10,297 

9,389 

8619 

35 

16,041 

i4-"7 

12,573 

11,295 

10,235 

9,339 

8.578 

36 

15,855 

13,987 

12,465 

11,211 

10,168 

9.285 

8,534 

37 

15665 

13,843 

12,354 

11,124 

10,098 

9.228 

8.488 

38 

I5-47* 

13,695 

12,239 

",033 

10.026 

9,169 

8-439 

39 

15.271 

13-542 

12,120 

io.939 

9,950 

9,107 

8,388 

40 

15,073 

13,390 

12,002 

10,845 

9.875 

9,046 
.        8,991 

8,337 

4i 

14,883 

13,245 

11,890 

10,757 

9.805 

8,292 

42 

14.694 

13,101 

",779 

10,671 

9.737 

8,937 

8,249 

43 

14,505. 

12.957 

n,668 

10,585 

9,669 

8,883 

8,206 

44 

14.308 

12806 

",55i 

10,494 

9.597 

8,826 

8,160 

45 

I4-Io4 

12.648 

11,428 

10  397 

9.52o 

8.764 

8,111 

46 

13,889 

12,480 

11296 

10,292 

9436 

8,607 

8,056 

2 

13,662 

12,301 

11,154 

10,178 

9,344 

8,622 

7,995 

13,419 

12,107 

10,998 

10.052 

9,241 

8,537 

7,925 

49 

13.153 

11,892 

10,823 

9,9o8 

9.121 

8,437 

7,840 

SO 

12,869 

11,660 

10,631 

9749 

8,987 

8,324 

7-744 

5* 

12,565 

11,410 

10,422 

9,573 

8,838 

8,197 

7,634 

322 


How  to  make  Money  make  Money. 


Value  of  Annuities  on  a  Single  Life. 

Calculated  on  a  basis  of  4,  5,  6,  7,  8,  9,  and  10  per  cent.     (Carlisle 
Table  of  Mortality.) 


Age. 

4  per  cent. 

5  per  cent 

6  per  cent. 

7  per  cent. 

8  per  cent. 

9  percent. 

10  per  ct. 

52 

$12,257 

$11,154 

$10,208 

$9,392 

$8,684 

$8,064 

$7-5i9 

S3 

",945 

10,892 

9,988 

9,205 

8,523 

7,926 

7-399 

54 

11,626 

10,624 

9,761 

9,011 

8,356 

7.781 

7272 

55 

11,299 

10,347 

9-524 

8.807 

8.179 

7627 

7,137 

56 

10,966 

10,063 

9,280 

8-595 

7,995 

7,465 

6,994 

57 

10,625 

9,77i 

9,027 

8,375 

7,802 

7,294 

6,843 

58 

10.286 

9,478 

8,772 

8.153 

7,606 

7.120 

6,687 

49 

9-963 

9.199 

8,529 

7,940 

7,418 

6954 

6539 

60 

9,663 

8,940 

8,304 

7-743 

9,245 

6,800 

6,402 

61 

9,398 

8,712 

8,108 

7572 

7,095 

6,669 

6285 

62 

9- 136 

8,487 

7>9*3 

7-403 

6-947 

6,539 

6,171 

63 

8,871 

8,258 

7,714 

7229 

6,795 

6,404 

6052 

64 

8,593 

8,016 

7.502 

7.042 

6.630 

6.258 

5-922 

65 

8,307 

7,765 

7,281 

6,847 

6,457 

6,104 

5-784 

66 

8,009 

7,503 

7,049 

6,641 

6,272 

5,938 

5635 

67 

7,699 

7,227 

6,803 

6,421 

6075 

5,76o 

5,474 

68 

7,379 

6,941 

6,546 

6,189 

5-866 

5,57o 

5,301 

69 

7048 

6,643 

5^988 

5,945 

5,643 

5,368 

5, "5 

70 

6,709 

6,336 

5,690 

5,4io 

5-153 

4,918 

7J 

6,357 

6,015 

5,704 

5420 

5.160 

4923 

4.704 

72 

6,025 

5,7" 

5,424 

5,162 

4,922 

4,7oi 

4,498 

73 

5,724 

5,435 

5,170 

4,927 

4,704 

4,499 

4,309 

74 

5,458 

5*190 

4,944 

4.719 

4,5" 

4,319 

4,142 

7I 

5,239 

4,989 

4,760 

4  549 

4,355 

4,175 

4,008 

76 

5,023 

4,792 

4,579 

4,382 

4,200 

4,031 

3,874 

7£ 

4,824 

4,609 

4,410 

4227 

4,056 

3,898 

3-751 

78 

4,621 

4,422 

4238 

4,067 

3,908 

3.760 

3,623 

U 

4-393 

4,210 

4040 

3-883 

3,736 

3,599 

3471 

4,182 

4.oi5 

3-853 

3-713 

3,577 

3,45o 

3,33i 

81 

3,953 

3,799 

3,656 

3,523 

3,398 

3,282 

3-I72 

82 

3,746 

3606 

3-474 

3,352 

3,237 

3,i30 

3,029 

83 

3,534 

3,4o6 

3,286 

3,i74 

3,069 

2.970 

2,877 

84 

3,328 

3,211 

3  102 

2,999 

2,903 

2,813 

2,728 

85 

3,"5 

3,009 

2.909 

2,815 

2,727 

2,644 

2,567 

86 

2,92§ 

2,830 

2,739 

3,652 

2,57i 

2,495 

2,423 

87 

2,775 

2,685 

2,599 

2,519 

2,443 

2,372 

2,304 

88 

2.683 

2,597 

2-515 

2,439 

2,366 

2,299 

2,234 

89 

2,577 

2,495 

2,417 

2,344 

2,276 

2,211 

2,150 

90 

2,416 

2,339 

2,266 

2.198 

2,133 

2,072 

2,015 

9i 

2,398 

2,321 

2,248 

2,180 

2,"5 

2,054 

1,997 

92 

2,491 

2.412 

2,337 

2,266 

2,198 

2,135 

2,075 

93 

2,599 

2,518 

2,440 

2,367 

2,297 

2,232 

2,170 

94 

2,649 

2569 

2,492 

2,419 

2,350 

2284 

2,221 

95 

2.674 

2.596 

2,522 

2,45i 

2,383 

2,319 

2,258 

96 

2,627 

2  555 

2,486 

2,420 

2,358 

2,298 

2,239 

97 

2,492 

2,428 

2,368 

2,309 

2253 

2,199 

2,150 

98 

2,332 

2.278 

2,227 

2,177 

2.129 

2,083 

2.039 

99 

2.087 

2,045 

2,004 

1,964 

1,926 

1,889 

1.856 

100 

1,652 

1,624 

1,596 

1,569 

x,543 

i,5i7 

i,493 

IOX 

1,210 

1,192 

i,i75 

I.I59 

1. 142 

1,127 

1,112 

102 

0,761 

o,7S3 

o,744 

o,735 

0,727 

0,719 

0,713 

103 

0,320 

0,317 

°,3H 

0.312 

0,309 

0,305 

0,304 

A  Remarkable   Volume. 


COSMOGONY; 


OR,     THE 


MYSTERIES    OF    CREATION. 

Being  an  Analysis  of  the  Natural  Facts  stated  in  the 

Hebraic  account  of  the  Creation,  supported  by 

the  development  of  existing  acts  of 

God  towards  matter. 

By  THOMAS  A.  DAVIES. 

Octavo.     Elegantly  bound  in  cloth.    With  many  Illustrations. 
Price  $2.00. 


TABLE   OF  CONTENTS. 


Nature  the  Pathway  of  God. 
Hebrew  and  English. 
Language. 

The  Universal  Creation. 
English  Translation. 
The  First  Day. 
Light — First  Combination. 
Second  Day. 
Third  Day. 
Combinations. 
Granite  Rock. 
Theory  Considered. 
Clav  Slate. 

Mica  and  Talc  Slates. 
Stratification. 
Mineral  Fossils. 
Fossil    Sand-Beaches    and 
Shells. 


Limestones. 

Sandstones. 

Coal. 

Inclinations  of  Rock  Forma- 
tions. 

Boulder  Rocks. 

Metals  and  Precious  Stones. 

Quartz  Rock. 

Sands,  Clays,  and  Soil. 

Rock  Salt  and  Mineral  Re- 
sins. 

Sulphur. 

Seas,  Lakes,  Rivers,  and 
Waters. 

Atmospheric  Air. 

Vegetable  Kingdom. 

Fourth  Day. 

Heavenly  Bodies. 


Equilibrium. 

Fifth  Day. 

Classification  of  Man   and 

Beasts. 
Sixth  Day. 

Ha-a-dam  and  A-dam. 
Color  of  Men. 
Whites  and  Blacks. 
Scriptural  Evidences. 
The  Flood. 
Scriptural  Evidences  in  Plain 

Words. 
Conclusions    from    the   Six 

Days'  Work. 
Seventh  Day. 


[From  the  New  York  Observer] 
"  A  remarkable  book  has  recently  made  its  appearance  in  this  city,  to  which  we  desire  to 
call  the  attention  of  the  public,  especially  that  portion  of  the  thinking  public  who  are 
accustomed  to  read  and  judge  for  themselves.    .     .     .    .     .     We  have  said  enough  of  this 

work  to  show  that  it  is  a  work  of  great  labor,  much  curious  and  profound  study,  and  worthy 
of  a  Christian  scholar. He  has  accomplished  a  great  work  ;  and  if  his  argu- 
ment will  stand  the  searching  criticism  to  which  biblical  literature  and  modem  science  will 
subject  it,  the  author  will  have  the  proud  satisfaction  of  knowing  that  he  has  made  one  of 
the  most  important  contributions  of  the  present  day  to  the  wall  of  defense  which  is  con- 
stantly becoming  more  and  more  impregnable  about  the  written  word  of  God." 

Sold  by  all  Booksellers  throughout  the  United  States  and 
Canadas. 

The  Publishers  will  send  copies  of  this  book  by  mail,  postage 
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stamps, — $2.00. 

G.   W.   Carleton   &   Co., 

Publishers  and  Booksellers, 

New  York. 


An   Unanswerable  Refutation 

OF 

GEOLOGIC    THEORIES   AS   ADVERSE  TO 
CHRISTIAN   FAITH. 

Answer  to 

HUGH    MILLER    AND    GEOLOGISTS. 

BY  , 

THOMAS   A.   DAVIES. 


CONTENTS. 

The  False  and  True  Records. 

Geologic  Testimony. 

Kingdoms  in  Lines  of  Existences. 

What  the  Mosaic  Account  of  Creation  is. 

Conflict  of  Geologic  Faith  with  Science  and  the  Scrip- 
tures. 

The  Expunging  the  Mosaic  Account  of  Creation,  and 
the  Substitution  of  the  Geologic  by  Hugh  Miller. 

Forms  in  the  Fossil  Kingdom. 

Hugh  Miller,  Discernible  and  Revealed. 

Concluding  Argument. 

Concluding  Argument. — Science  of  the  Geologic  Faith. 

Concluding  Argument. — Several  Conflicts  of  the  Geolo- 
gic and  Biblical  Christian  Faith. 


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Canadas. 

The  Publishers  will  send  copies  of  this  book  by  mail,  postage 
paid,  to  any  part  of  the  United  States,  on  receipt  of  the  price  in 
stamps, — $1.50. 

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New  York. 


NEW    BOOKS 

And    New  Editions    Recently  Published  by 

G.  W.  CARLETON  &  CO., 

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UNIVERSITY  OF  CALIFORNIA  LIBRARY 
BERKELEY 

Return  to  desk  from  which  borrowed. 
This  book  is  DUE  on  the  last  date  stamped  below. 


APR  19 1996 


I 


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^K  CIRCULATION  D 


W0V151986 


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6401         lEC 
JAN  2 


NOV  2  2  1999 


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4 '86 


SENT  ON  ILL 

APR  2  0  2Q01 

U.  C.  BERKELEY 


LD  21-95m-ll,'50(2877slC)476 


YH  26S4 


GENERAL  LIBRARY  -  U.C.  BERKELEY 

II 


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9 


